Economics Multiple Choice Question – 25 July 2017

Deflation means?

Select ONE answer:

1. The economy is declining
2. The interest rate is falling
3. The exchange rate is rising
4. Prices are falling
5. Unemployment is rising

Explain one reason why deflation might occur:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 4 – Deflation is reduction of the general level of prices in an economy.

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