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Inflation affects money by increasing money's efficiency as a medium of exchange limiting money's role as...

Inflation affects money by

increasing money's efficiency as a medium of exchange

limiting money's role as a store of value

reducing the supply of money

reducing transactions and search costs

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Answer #1

Answer: Limiting money's role as a store of value?

Explanation: Inflation is a general rise in prices of products and services within an economy in a particular year, as compared to the previous year. During inflation, the value of money falls as many people get a lot of currency money and hence the demand for goods and services rise. This leads to higher demand and limited supply and thus rising prices. So, the money's role as a store of value becomes limited.

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