Money is still useful during times of inflation because
A) it still retains the characteristic of predictability of value.
B) more money can be made so people can still purchase the goods and services they want.
C) it is not a liquid asset.
D) its opportunity cost falls as inflation rises.

Question

Quizplus · Accepted Answer

Although inflation may reduce the purchasing power of money, it still retains the characteristic of predictability of value, which makes it a useful medium of exchange. Inflation erodes the purchasing power of money over time, but the value of money is still more predictable than most other goods and services.

Money Is Still Useful During Times of Inflation Because