Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

A country recorded an annual deflation rate of 2% over four consecutive years. Which statement is correct for the four-year period?

  • AThe price level fell by 8%.
  • BThe price level fell by less than 8%.
  • CThe real value of money fell by 8%.
  • DThe real value of money fell by less than 8%.

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