HISTORY
WORLD WAR II
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What best defines “inflation”?
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Money value goes up, prices go down
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Money value goes down, prices go up
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Money value and prices both go up
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Money value is determined by the economic state of the totalitarian
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Explanation:
Detailed explanation-1: -What Is Inflation? Inflation is a rise in prices, which can be translated as the decline of purchasing power over time. The rate at which purchasing power drops can be reflected in the average price increase of a basket of selected goods and services over some period of time.
Detailed explanation-2: -Down through the years, gold has been the traditional investment to hedge against inflation. Gold is a physical asset and tends to hold its value while the value of financial assets may drop due to the decline in purchasing power.
Detailed explanation-3: -demand-pull, cost-push, and. inflation expectations.
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