Multiple choice general knowledge

Give one word to describe a situation when a fall in the value of money causes a rise in the cost of goods and services?

  1. Deflation

  2. Stagnation

  3. Recession

  4. Inflation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Inflation occurs when the value of money decreases, causing a general rise in the price level of goods and services. Deflation is the opposite - falling prices. Stagnation refers to economic inactivity, and recession is a significant decline in economic activity.

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