In times of rapid inflation,
A)money loses its use as a store of value
B)money becomes an attractive store of wealth
C)people postpone purchases as long as possible
D)people spend less in transactions costs
E)people tend to save more money

Question

Quizplus · Accepted Answer

In times of rapid inflation, the value of money decreases rapidly, making it less useful as a store of value. This means that people are less likely to save their money and more likely to spend it quickly in order to avoid further losses of value. Therefore, choice A is the correct answer.

In Times of Rapid Inflation