Question

If you are saving for a new fridge that costs $2,000 and the economy experiences

inflation, what can you expect to happen to the price of the fridge?

It is likely to go down
Appliances are not effected by inflation, only food products
It is likely to go up

Answer 1

Inflation affects everything, the fridge will be more expensive, for example now cost $2,000 if inflation continues in two year that fridge can cost $3,000 because The purchasing power of the low currency