3
practice testMultiple Choice

Practice Test

Question 3 • Economics

What is the difference between inflation and deflation?

Answer
A
Inflation can result from falling demand and boosts the value of money. Deflation can result from rising demand and reduces the value of money.
B
Inflation can result from rising demand and boosts the value of money. Deflation can result from falling demand and reduces the value of money.
C
Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.
D
Inflation can result from falling demand and reduces the value of money. Deflation can result from rising demand and boosts the value of money.
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