When there is inflation,the number of dollars needed to buy a representative basket of goods
A)increases,and so the value of money rises.
B)increases,and so the value of money falls.
C)decreases,and so the value of money rises.
D)decreases,and so the value of money falls

Question

Quizplus · Accepted Answer

When there is inflation, prices of goods and services increase, meaning more dollars are needed to buy the same basket of goods, which decreases the purchasing power or value of money.

When There Is Inflation,the Number of Dollars Needed to Buy