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If inflation falls from​ 11% to​ 5%, there is deflation.
A. True
B. False

User Dlf
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1 Answer

3 votes

Answer:

False.

Step-by-step explanation:

False.

Deflation is the decline in prices. Meaning that there is a general decrease in prices of goods and services. In the example, inflation is diminishing. Prices increase at a lower rate, but, they increase.

Deflation benefits consumers because they can purchase more goods and services with the same nominal income.

User Tunji Oyeniran
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