How does inflation affect the value of money - SS2 Economics Value of Money And The Price Level Question
How does inflation affect the value of money?
A
Inflation increases the value of money
B
Inflation has no effect on the value of money
C
Inflation decreases the value of money
D
Inflation has the opposite effect on the value of money depending on the country
correct option: c
(Inflation is the rate at which the general price level is increasing over time. Inflation can decrease the value of money, by reducing the purchasing power of a given amount of currency)
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