QuestionAugust 16, 2025

Question 2(Multiple Choice Worth 5 points) (02.04 MC) Which of the following is true about the impact of inflation on the value of money? If inflation rises, the value of money is worthless. If inflation rises, the value of money increases. If inflation rises, the value of money decreases. If inflation rises, the value of money remains the same.

Question 2(Multiple Choice Worth 5 points) (02.04 MC) Which of the following is true about the impact of inflation on the value of money? If inflation rises, the value of money is worthless. If inflation rises, the value of money increases. If inflation rises, the value of money decreases. If inflation rises, the value of money remains the same.
Question 2(Multiple Choice Worth 5 points)
(02.04 MC)
Which of the following is true about the impact of inflation on the value of money?
If inflation rises, the value of money is worthless.
If inflation rises, the value of money increases.
If inflation rises, the value of money decreases.
If inflation rises, the value of money remains the same.

Solution
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Answer

If inflation rises, the value of money decreases. Explanation 1. Identify the relationship between inflation and money value Inflation causes the purchasing power of money to decrease, meaning more money is needed to buy the same goods and services.

Explanation

1. Identify the relationship between inflation and money value<br /> Inflation causes the purchasing power of money to decrease, meaning more money is needed to buy the same goods and services.
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