A reduction in the rate of inflation is called _____
A) deflation.
B) inflation.
C) hyperinflation.
D) disinflation.
E) growth.

Question

Quizplus · Accepted Answer

A reduction in the rate of inflation is called disinflation. This means that the inflation rate is decreasing, but prices are still increasing. Deflation would indicate that prices are actually decreasing, while inflation means that prices are increasing at a higher rate. Hyperinflation refers to an extremely rapid and uncontrollable increase in prices. Growth is a separate concept related to an increase in economic activity or output.

A Reduction in the Rate of Inflation Is Called _____