Money is an imperfect store of value when
A)the rate of inflation is high.
B)the unemployment rate is high.
C)gold prices are falling.
D)businesses are failing due to bankruptcy.

Question

Quizplus · Accepted Answer

When the rate of inflation is high, the purchasing power of money decreases over time, making it an imperfect store of value. Inflation erodes the value of money, and therefore, it cannot be relied upon as a long-term store of value.

Money Is an Imperfect Store of Value When