Question

14

Select the correct answer

Which statement best describes inflation?

A. Inflation decreases the amount of goods and services that can be purchased with a dollar,

B. Inflation increases the amount of goods and services that can be purchased with a dollar,

C. Inflation increases the purchasing power of a dollar.

D. Inflation decreases the prices of goods and services.

E. Inflation doesn't affect the prices of goods and services but increases wages.

Answer 1

Option A will be correct

Explanation:

Inflation means the general increase in prices of products and services and fall in the purchasing value of money.

Now, we have to select the correct option from options given that correctly means inflation.

Then option A will be correct and that gives "Inflation decreases the amount of goods and services that can be purchased with a dollar". (Answer)