[Solved] What do you understand by the term "deflation"?

McqMate

Q.	What do you understand by the term "deflation"?
A.	Excess circulation of money, causing dearness of goods
B.	Increase in interest rates diverts money into savings and reduce circulation of money causing prices to fall.
C.	Devaluation of local currency to the larger exte
Answer» B. Increase in interest rates diverts money into savings and reduce circulation of money causing prices to fall.

3.3k

0

Do you find this helpful?

49

View all MCQs in

Discussion

No comments yet

Related MCQs

Deflation is a situation in which -
What do you understand by the term "Kerb" in foreign currency dealings:
The process of converting short term to long term debt by the sale of long term securities and using the funds raised to pay off short-term debt is called:
The market for long term loanable funds as different from the market that deals in short term loans is called:
The inefficiencies associated with employing a representative to carry out a task for you rather than carrying it out yourself are known as in economical terms as
The main source of long-term credit for a business unit is -
founded in the year 1886 by a pharmacist named John Pemberton, this product is the second most widely understood term in the world after "OK". What is its name?
A short-term government security paper is called -
Short term contractions and expansions in economic activity are called
The term "market" in Economics means -