WBCS.LIVE practice question

Which statement is true regarding disinflation?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Inflation due to only a few commodities.
  2. Overall decrease in prices.
  3. Decrease in the rate of inflation.
  4. Sudden sharp price decrease.

Correct answer and explanation

Correct answer: Decrease in the rate of inflation.