ago in Finance by (26.4k points)

Question: Which of these statements is true?

Options:

  1. Inflation means our money has more purchasing power.
  2. Inflation happens when there is not enough money.
  3. Inflation is due to low production costs.
  4. Inflation is problematic if unexpected.

Please log in or register to answer this question.

1 Answer

0 votes
ago by (115k points)
selected ago by
 
Best answer

4. Inflation is problematic if unexpected.

"Inflation is problematic if unexpected" is the statement is true about inflation.


More info:

Inflation is problematic if it is unexpected. Money loses purchasing power during inflation and there's too much of it.

Prices rise and people/businesses buy less with the same amount of money. SO, the value of money decreases.

Related questions

...