Answered

Which term refers to an economic situation where the small amount of money in circulation lowers prices and lessens demand for goods?

Acompetition
Bdistribution
Csubstitution
Ddeflation

Verified Answer :

keikeikei

answer is d. deflation

sebastiansierraocm

Answer:

The correct answer is deflation. Deflation is the reduction in the price levels. It is the opposite to Inflation. Deflation can occur when the supply of goods is higher than the demand (more things are offered than people want to buy), thus decreasing the price of things. It can also occur when the money supply (the amount of money in an economy) is low, and therefore, each bill and coin has more value and can buy more things.

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