If the inflation rate is negative, the price level in an economy is
A) rising rapidly.
B) falling.
C) rising slowly.
D) constant.

Name: If the inflation rate is negative, the price level in an economy is A) rising rapidly. B) falling. C) rising slowly. D) constant.
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Question

Quizplus · Accepted Answer

Negative inflation rate means that the general price level of goods and services has decreased over time. Therefore, the price level is falling.

If the Inflation Rate Is Negative, the Price Level in an Economy