Question

Inflation is a sustained rise in the general level of prices of goods and services.

Question 4 options:
True
False

Answer 1

"Inflation: a general increase in prices and fall in the purchasing value of money. "

there's the definition.

Answer 2

The correct answer is True.

Step-by-step explanation:

Inflation is a way of measuring the rate of a certain product or service increases over a certain period of time, which can be a month, a year, etc.

In inflation, the currency of a country is devalued, that is, the currency loses value. You don't buy the same with 10 dollars today, what you bought with that money ten years ago, and this is caused by inflation.

When inflation occurs the currency of a country decreases its value and this is expressed through a percentage that impacts the cost that products and services will have.

For example, suppose that the rate of a product that today costs 5 dollars is 4% per year. Then said product next year will cost 4% more. This means that the product will cost 5.20 dollars.

Therefore, the correct answer is Inflation is a sustained rise in the general level of prices of goods and services.