Chronic inflation damages an economy by:

Question

Quizplus · Accepted Answer

Chronic inflation discourages saving because people anticipate that their savings will lose value over time. It erodes the purchasing power of money, meaning that the same amount of money will buy fewer goods and services in the future. It also encourages nonproductive activities, such as speculative investments, as people seek to protect their wealth from inflationary losses, rather than investing in productive activities that would contribute to economic growth.

Chronic Inflation Damages an Economy By