A reduction in the rate of inflation would be

A) deflation.
B) hyperinflation.
C) disinflation.
D) crawling inflation.

Question

A reduction in the rate of inflation would beA) deflation.B) hyperinflation.C) disinflation.D) crawling inflation.

Patricia Belinda Halim · Accepted Answer

Final Answer : C, Explanation :  Disinflation refers to a situation where the rate of inflation decreases, but it is still positive. It is a slowing down of the rate of inflation without the occurrence of deflation. Therefore, option C is the correct choice. Option A (deflation) refers to a situation where there is a sustained decrease in the overall price level of goods and services, option B (hyperinflation) refers to a situation where there is a rapid and sustained increase in the overall price level, and option D (crawling inflation) refers to a situation where inflation is not too high but is steadily increasing over time.

A reduction in the rate of inflation would be

A) deflation.
B) hyperinflation.
C) disinflation.
D) crawling inflation.

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