High inflation
A) leads to a more correct allocation of resources.
B) lowers the price level.
C) decreases uncertainty.
D) makes it easier to use money as a standard of account.
E) makes money function less well as a store of value.

Question

Quizplus · Accepted Answer

High inflation reduces the purchasing power of money over time, making it less useful as a store of value. As a result, people may seek alternative ways to store value, such as by investing in assets that hold their value better. This can make the economy less stable, as people shift their resources away from more productive investments towards non-productive safe havens.

High Inflation