134k views
5 votes
How does inflation affect money as store value ?​

1 Answer

2 votes
Inflation means that the value of money decreases. ... This means that it is harder to place a value on money, thus it becomes more difficult to use it as a store of value. With a high rate of inflation, the real value of debt erodes. This means that it is effectively easier to pay back the debt.
User Mohammed Atif Sami
by
4.6k points