Low inflation rate in the late 1990 is caused by all of the following EXCEPT
A)fall in oil prices.
B)dollar appreciation.
C)productivity growth.
D)pricking of the asset bubble.

Question

Quizplus · Accepted Answer

The pricking of an asset bubble is more likely to cause deflation rather than low inflation. Therefore, D is the only option that does not contribute to the low inflation rate in the late 1990s. A fall in oil prices, dollar appreciation, and productivity growth all helped to keep prices stable and low during this time.

Low Inflation Rate in the Late 1990 Is Caused by All