ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The value of money decreases
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The value of money increases
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The value of the money increases first and then decreases
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The value of money decreases first and increases later
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Detailed explanation-1: -Inflation is defined as a sustained increase in the general level of prices for goods and services in a country and is measured as a periodic(usually it is annual) change. Under conditions of inflation, the prices of things rise over time. Inflation reduces the value of currency over time, but deflation increases it.
Detailed explanation-2: -Inflation means a state of general rise in prices. Inflation is commonly understood as a situation in which prices of goods and services rise, at a fast pace. Prof. Crowther defines inflation as a state in which the value of money is falling, i.e., prices are rising.
Detailed explanation-3: -Crowther defined inflation as a state in which the value of money is falling.
Detailed explanation-4: -Inflation is one of the main factors that reduce the value of your money over time. It means that the money you have at the beginning of the year will get you lesser goods and services at the end of the year.
Detailed explanation-5: -Inflation is the general rise in the prices of goods and services in an economy, over a period of time. It reduces the purchasing power of consumers, because each unit of currency can purchase fewer products with an increase in the general price levels.