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Consider the following statements about price rise:
1.Persistent fall in the prices of goods and services is referred to as ‘Disinflation’.
2.Infusion of money in the market to augment money supply is referred to as ‘Reflation’.
Which of the statement is/are correct?
Only 1
Only 2
Both 1 and 2
Disinflation (Option 1) refers to a decrease in the rate of inflation, not a persistent fall in prices.
Reflation (Option 2) involves the infusion of money into the market to increase money supply and stimulate economic activity, which is the correct definition provided in the statement.
By: Kamal Kashyap ProfileResourcesReport error
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