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    Question

    If the rate of inflation is very slow, it is known as

    which among the following?
    A Uncouth Inflation Correct Answer Incorrect Answer
    B Disinflation Correct Answer Incorrect Answer
    C Uninflation Correct Answer Incorrect Answer
    D Deflation Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Disinflation is defined as the situation where the inflation has slowed down temporarily. It is basically inflation at very slow rate. It can take place due to recession in the economy or tightening of the monetary policy by the central bank of the country. It is different from deflation due to the fact that it is only change in the rate of inflation.

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