Tuesday, December 28, 2010

What Is Deflation

CHICAGO - JANUARY 27:  Traders on the CME Grou...Image by Getty Images via @daylife What is deflation and how does it effect are economy? Deflation is a decrease in the general price level of goods and services. Deflation occurs when the annual inflation rate falls below zero percent (a negative inflation rate), resulting in an increase in the real value of money – allowing one to buy more goods with the same amount.

The economy is falling short because of deflation and that has a good effect on goods and services.

What Is Deflation Anyhow?

What Is Deflation Anyhow? More information: see more. Permalink Leave a comment »

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