Which of the following best describes inflation?
a. there is a general decrease in prices.
b. the value of money decreases.
c. there is a surplus of products on the market.
d. there is an increase in purchasing power.

B. The value of money decreases.

Explanation:

Inflation The generalized and sustained increase in the level of prices existing in the market over a period of time, when the general level of prices increases. That is to say, that inflation reflects the diminution of the purchasing power of the currency: a loss of the real value of the internal medium of exchange and unit of measure of an economy. A frequent measure of inflation is the price index, which corresponds to the annualized percentage of the general price variation over time (the most common is the consumer price index).

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