What is deflation? – InterviewSolution

1.	What is deflation?
Answer» OMICS, deflation is a DECREASE in the general price level of goods and SERVICES. Deflation occurs when the inflation rate falls below 0%. Inflation reduces the value of currency over time, but sudden deflation increases it.Deflation can be caused by a combination of different FACTORS, including having a shortage of money in circulation, which increases the value of that money and, in TURN, reduces prices; having more goods produced than there is demand for, which means businesses must decrease their prices to get people to buy

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