Which statement best describes how inflation affects the value of investments over time?
A. It erases the value of investments.
B. It increases the value of money.
C. It decreases the value of money.
D. It controls the value of investments.
The answer to the question above is C) It decreases the value of money. The inflation is an indicator which shows an increasing in the price of overall items in a country and this increasing in price is followed by a decreasing in money ability to buy those items. This situation creates a decreasing in the value of money.
