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In the situation known as deflation, what happens to prices?

A. Prices are stagnant.
B. Prices are declining.
C. Prices are increasing.

Sagot :

GinnyAnsweridn

Final answer:

Deflation is a decrease in prices, leading to an increase in the purchasing power of money.


Explanation:

Deflation is a decrease in the general price levels of goods and services, occurring when the inflation rate falls below 0%. In this situation, prices are declining. Deflation increases the purchasing power of money, allowing individuals to buy more goods with the same amount of money over time.


Learn more about Deflation and its effects on prices here:

https://brainly.com/question/31369282


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