Inflation is defined as:
A) the amount originally paid to acquire an asset
B) dollar measurements that are restated in terms of current purchasing power
C) generally the cost to replace an asset
D) a general decline in the purchasing power of the monetary unit

Question

Quizplus · Accepted Answer

Inflation is a general decline in the purchasing power of the monetary unit, meaning that over time, each unit of currency buys fewer goods and services.

Inflation Is Defined As