The rate at which a price index decreases is referred to as the ________.
A) deflation rate
B) depreciation rate
C) federal funds rate
D) discount rate

Question

Quizplus · Accepted Answer

The deflation rate refers to the rate at which a price index decreases, indicating a general decrease in prices across an economy. Depreciation rate is a term used in accounting and finance for the decrease in value of an asset over time. The federal funds rate and discount rate are both interest rates used by central banks in monetary policy.

The Rate at Which a Price Index Decreases Is Referred