Question

Which of the following best describes deflation?

A. A decrease in the cost in the goods and services.
B. An increase in the cost of goods and services.
C. A decrease in purchases of goods and services.
D. A increase in purchases of goods and services.

Answer 1

I believe the answer is A) A decrease in the cost in the goods and services.

Answer 2

Deflation is A) A decrease in the cost in the goods and services.

Deflation is the opposite of inflation (the increase in the cost in goods and services).

Hope this helps! :)