Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

An economy went through deflation. Which combination indicates the most likely result of this?

  • Aconsumer confidence decrease, price level decrease, investor confidence decrease
  • Bconsumer confidence decrease, price level increase, investor confidence decrease
  • Cconsumer confidence increase, price level decrease, investor confidence increase
  • Dconsumer confidence increase, price level increase, investor confidence increase

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