As the rate of inflation increases,
A)the cost of living goes down.
B)interest rates decrease.
C)paychecks decrease.
D)retirement plans have more difficulty meeting their goals.
E)purchasing power of a dollar increases.

Question

Quizplus · Accepted Answer

When the rate of inflation increases, the cost of goods and services also increases. This can make it more difficult for retirement plans to meet their goals because they may not be able to keep up with the rising costs of living. As a result, investments in retirement plans may not generate the expected returns, which can impact a person's retirement savings.

As the Rate of Inflation Increases