The greater the inflation rate, the
A) faster the decrease in the purchasing power of money.
B) slower the decrease in the purchasing power of money.
C) better it is to hold money as cash.
D) better it is to put money into savings accounts.

Question

Quizplus · Accepted Answer

Inflation is a measure of the rate at which prices of goods and services are rising. As inflation increases, the purchasing power of money decreases at a faster rate. This means that the same amount of money can buy fewer goods and services when there is high inflation. Therefore, the best choice is A.

The Greater the Inflation Rate, the