An economic condition in which rising prices reduce the purchasing power of money is termed
A)deflation.
B)inflation.
C)stagflation.
D)cash erosion.
E)none of the above.

Question

Quizplus · Accepted Answer

Inflation is the economic condition in which rising prices reduce the purchasing power of money. Deflation is the opposite, where there is a general decrease in prices, and stagflation is a combination of high inflation and stagnant economic growth. Cash erosion is not a commonly used economic term.

An Economic Condition in Which Rising Prices Reduce the Purchasing