Unpredictable changes in the value of money, which brings about gains and losses, are a consequence of unpredictable changes in
A) productivity.
B) real GDP.
C) unemployment rate.
D) inflation.

Question

Quizplus · Accepted Answer

Unpredictable changes in the value of money are a consequence of unpredictable changes in inflation. Inflation refers to the rate at which prices for goods and services increase over time, which affects the purchasing power of money. When inflation rates rise, the value of money decreases, and when inflation rates fall, the value of money increases. This unpredictability can lead to gains and losses for individuals and businesses.

Unpredictable Changes in the Value of Money, Which Brings About