Inflation can be thought of as:

Question

Quizplus · Accepted Answer

Inflation is a decrease in the purchasing power of money, meaning that the same amount of money can buy fewer goods and services than before. This is caused by an increase in the supply of money relative to the demand for goods and services. Therefore, option B is the correct answer. Option A is incorrect because the price of money does not change, and options C and D do not accurately describe the cause and effect relationship of inflation.

Inflation Can Be Thought of As