Multiple choice general knowledge

The negative inflation indicates

  1. the prices of goods are moderate

  2. prices of goods are going high

  3. prices of goods are going low

  4. we can't say any thing about prices
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Negative inflation, also known as deflation, occurs when the general price level of goods and services falls over time. This means consumers can purchase more goods with the same amount of money. Option A is incorrect because negative inflation doesn't indicate moderate prices - it indicates falling prices. Option B is the opposite of correct - rising prices would be positive inflation.

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