Final answer:
Declining inflation rates typically slow economic growth and decrease asset prices. Therefore, the correct answer is C.
Step-by-step explanation:
Declining inflation rates typically slow economic growth and decrease asset prices.
When inflation is declining, it means the general level of prices for goods and services is decreasing. This can lead to reduced consumer spending and business investment, which can slow down economic growth. Additionally, declining inflation rates may also lead to a decrease in asset prices, such as stocks, real estate, and commodities, as investors may perceive lower future returns.