What is the difference between inflation and deflation?
inflation can result from falling demand and boosts the value of money deflation can result from rising demand and
reduces the value of money
inflation can result from rising demand and boosts the value of money deflation can result from falling demand and
reduces the value of money
inflation can result from falling demand and reduces the value of money deflation can result from rising demand and
boosts the value of money
inflation can result from rising demand and reduces the value of money deflation can result from falling demand and
boosts the value of money

D) Inflation can result from rising demand and reduces the value of money Deflation can result from falling demand and  boosts the value of money

Explanation:

Inflation is the continuous and widespread rise in the prices of goods and services in an economy. This is a monetary phenomenon, caused by the excess of currency in circulation in the economy. When demand is very hot and money circulates faster, prices tend to rise, causing inflation. Rising inflation decreases the purchasing power of money, as with each inflationary process, more money will be needed to buy the same good.

On the contrary, deflation is the inverse process of inflation. Deflation occurs when prices retract due to lack of demand, when the economy is stagnant or in recession. In addition, deflation increases the consumer's purchasing power, that is, it increases the value of money. If in a certain period you buy a good for $ 100 with your salary, and if there is a deflation, you can buy the product for example for $ 95, that is, your purchasing power increased even without your salary increasing.

D) Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.

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