When there is inflation,
A) average prices fall.
B) the value of money rises.
C) the purchasing power of your savings falls.
D) the purchasing power of your savings rises.
E) your standard of living falls if your income rises faster than the prices of what you buy.

Question

Quizplus · Accepted Answer

Inflation causes prices to rise, which reduces the purchasing power of your savings. This means that the money you have saved can buy less than it could before. As a result, inflation erodes the value of your savings over time.

When There Is Inflation