Question

5. Which of the following statements is not related to deflation?
i) It is a sudden fall in the value of a currency against other currencies.
ii) It is a persistent recession in both the financial and real sectors of economy.
iii It is a persistent fall in the general price level of goods and services due to contraction in supply of money in the market.
iv It is a fall in the rate of inflation over a period of time.
Select the correct option/s

• A. a) i and ii only
  
  
• B. b) i, ii and iv only
  
• C. c) iii only
  
• D. d) None of the above

Answer 1

The correct option is B b) i, ii and iv only


B)

Explanation:

Deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate)