During inflationary periods,
A)the real value of money rises.
B)the real value of money remains constant.
C)the real value of money falls.
D)the purchasing power of money rises.

Question

Quizplus · Accepted Answer

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. As prices rise, the purchasing power of money falls, meaning that the same amount of money can buy fewer goods and services. Therefore, the real value of money falls during inflationary periods.

During Inflationary Periods