Question

e. Which of the following statements is true? Deflation means that the price level is falling, whereas with inflation the inflation rate is rising. Deflation means that the price level is falling, whereas with inflation overall prices are rising. Deflation means that the inflation rate is falling, whereas with inflation overall prices are rising. Deflation means that the inflation rate is falling, whereas with inflation the inflation rate is rising.

Answer 1

Answer:

The answer to this question is option B. Deflation means that the price level is failing, whereas with inflation overall prices are rising

Explanation:

Inflation is an increase in the general prices of goods and services in an economy on the other hand, deflation is the general decline in prices for goods and services, indicated by an inflation rate that falls below zero percent.

Hence the answer is option B. Deflation means that the price level is failing, whereas with inflation overall prices are rising

Answer 2

Answer:

the answer is  B. Deflation means that the price level is failing, whereas with inflation overall prices are rising

Explanation: