Question

Which of the following best describes inflation?

A. There is a general decrease in prices.
B. The value of money decreases.
C. There is a surplus of products on the market.
D. There is an increase in purchasing power.

Answer 1

B. The value of money decreases.

Step-by-step explanation:

Inflation The generalized and sustained increase in the level of prices existing in the market over a period of time, when the general level of prices increases. That is to say, that inflation reflects the diminution of the purchasing power of the currency: a loss of the real value of the internal medium of exchange and unit of measure of an economy. A frequent measure of inflation is the price index, which corresponds to the annualized percentage of the general price variation over time (the most common is the consumer price index).