Deflation Refers to

question 203

Multiple Choice

Deflation refers to

• A)a decrease in the rate of inflation.
• B)a falling price level.
• C)Both A and B are correct.
• D)None of the above is correct.

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Definitions:

Optimal Level

The most efficient, effective, or desirable point or degree for a specific purpose or condition.

Corrective Taxes

Taxes designed to encourage or discourage certain behaviors among consumers or producers, often used to correct the effects of a negative externality.

Coase Theorem

The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own

Distribution Of Rights

The allocation of legal entitlements and responsibilities among individuals, organizations, or governments.