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
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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