multiple choice question\nif the cpi falls from 2.33 to 2.25, then there has been _______.\ndisinflation\ninf…

multiple choice question\nif the cpi falls from 2.33 to 2.25, then there has been _______.\ndisinflation\ninflation\nhyperinflation\ndeflation

multiple choice question\nif the cpi falls from 2.33 to 2.25, then there has been _______.\ndisinflation\ninflation\nhyperinflation\ndeflation

Answer

Brief Explanations:

The Consumer - Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. When the CPI falls, it indicates deflation. Disinflation is a decrease in the rate of inflation (CPI is still rising but at a slower pace). Inflation is a general increase in prices (CPI rises). Hyper - inflation is extremely high and typically accelerating inflation. Since the CPI has decreased from 2.33 to 2.25, it's deflation.

Answer:

deflation