What Is the Difference Between Disinflation and Deflation

question 106

Multiple Choice

What is the difference between disinflation and deflation?

• A) Disinflation is a smaller increase in prices, whereas deflation is a decrease in prices.
• B) Deflation is a smaller increase in prices, whereas disinflation is a decrease in prices.
• C) The Fed can engineer disinflation but not deflation.
• D) There is no difference between disinflation and deflation.

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Definitions:

Fractures

Breaks or cracks in rock caused by physical stress, often resulting in significant geological structures.

Unsaturated Zone

The layer of ground above the water table where pores are not fully saturated with water.

Water Table

The level below which the ground is completely saturated with water, marking the boundary between the unsaturated zone and the saturated zone.

Permeability

is a measure of how easily fluids can pass through a porous material or rock.