When inflation begins to rise, people can prevent their wealth from deteriorating by doing all of the following except

Question

Quizplus · Accepted Answer

Holding more cash during inflation actually leads to a decrease in purchasing power, as the value of cash diminishes with rising prices. Options B, C, and D are strategies to preserve or potentially increase wealth by either converting cash into assets that may appreciate or maintain value better than cash or by spending cash before it loses value.

When Inflation Begins to Rise, People Can Prevent Their Wealth