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The following appeared in a newspaper​ article:​"Inflation in the Lehigh Valley during the first quarter of​ [the year] was less than half the national​ rate...So, unlike much of the​ nation, the fear here is​ deflation-when prices sink so low that the CPI drops below​ zero."​Source: Dan​ Shope, "Valley's Inflation Rate​ Slides," (Allentown,​ PA) Morning Call​, July​ 9, 1996.Do you agree with the​ reporter's definition of deflationLOADING...​?A.Yes. When prices fall too​ low, the CPI is negative.B.No. Deflation occurs when the nominal interest rate is greater than the real interest rate.C.Yes. Deflation is caused by a negative CPI.D.No. Deflation is defined as a negative inflation rate.

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