When inflation falls, people

a. make less frequent trips to the bank and firms make less frequent price changes.

b. make less frequent trips to the bank while firms make more frequent price changes.

c. make more frequent trips to the bank while firms make less frequent price changes.

d. make more frequent trips to the bank and firms make more frequent price changes?

Question

Kailyn

Business

25 June, 12:33

When inflation falls, people

a. make less frequent trips to the bank and firms make less frequent price changes.

b. make less frequent trips to the bank while firms make more frequent price changes.

c. make more frequent trips to the bank while firms make less frequent price changes.

d. make more frequent trips to the bank and firms make more frequent price changes?

+2

Answers (1)

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Dana Mcdonald · Answer 1

When inflation falls, people less frequent trips to the bank and firms make less frequent price changes. When inflation changes the value of money rises or declines therefor people have less purchase power. Inflation in economics is defined as the increase value of goods and services in an economy over a set amount of time. When people have less to spend, they make less trips to the bank and firms will make less changes to price because they aren't sure which way to go with price increase or decrease.