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:

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