If prices increase rapidly
A) money's usefulness as a store of value is diminished.
B) money increases in value.
C) deflation is likely.
D) prices will decline to their normal level.

Question

Quizplus · Accepted Answer

If prices increase rapidly, it means that the value of money is decreasing as more money is needed to purchase the same goods and services. This reduces the usefulness of money as a store of value, making option A the correct choice. Options B, C, and D are incorrect because they suggest an increase in the value of money or a decline in prices, which is not likely in a scenario of rapid price increases.

If Prices Increase Rapidly