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

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 the general level of prices for goods and services is rising, which affects the purchasing power of currency. As inflation changes, the value of money changes, leading to gains or losses depending on whether one is a borrower or a lender. Changes in unemployment rate, real GDP, and productivity can also affect the economy and the value of money, but they do not directly cause unpredictable changes in the value of money.

Unpredictable Changes in the Value of Money, Which Brings About