The stored value of money over time should not change significantly as long as the level of inflation is
A) high.
B) low.
C) adjusted by the government.
D) less than your pay increases.

Question

Quizplus · Accepted Answer

Inflation erodes the value of money over time. If inflation is high, then the stored value of money will change significantly over time. However, if it is low, the stored value of money will not change significantly. The government may attempt to adjust inflation through monetary policy, but this is not a guarantee. If inflation is less than your pay increases, you may still experience a loss of purchasing power if prices for goods and services rise at a faster rate than your salary.

The Stored Value of Money Over Time Should Not Change