Inflation is defined as: a) A decrease in the general level of prices b) An increase in the general level of prices c) Stability in the general level of prices d) A decrease in the purchasing power of money

Which of the following statement about inflation is incorrect a. A positive inflation rate reduces purchase power of dollars b. Excess money supply increases inflation c. A positive inflation rate increases the real interest rate d. A positive inflation rate lows the real interest rate

Why inflation is considered and have effect in present value?

Inflation is a general rise in market prices that affects all goods equally. OA. True OB. False