Capital MarketsQuestion 343 of 398
Inflation is best defined as:
a.A general, sustained increase in the prices of goods and services over time
b.A decrease in the overall level of prices
c.An increase in the value of a currency
d.A rise in the unemployment rate
Explanation
Inflation is a general and sustained rise in the price level of goods and services, which reduces the purchasing power of money over time. Deflation, its opposite, is a general decline in prices.
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