Inflation refers to the:
A) Exchange rate between two different currencies
B) Decline in general purchasing power of a monetary unit
C) Increase in general purchasing power of a monetary unit
D) Time value of money

Question

Quizplus · Accepted Answer

Inflation refers to the decline in general purchasing power of a monetary unit. This means that over time, the same amount of money will be able to buy fewer goods and services. It is caused by a variety of factors, including an increase in the supply of money, a decrease in the demand for goods and services, and an increase in production costs.

Inflation Refers to The