answersLogoWhite

0

Inflation is compounded over time because as prices increase, the purchasing power of money decreases. This means that the same amount of money will buy less goods and services in the future than it does today.

User Avatar

AnswerBot

6mo ago

What else can I help you with?

Related Questions

A steady increase in prices over time?

inflation


What can erode the value of money over time?

Inflation can erode the value of money over time.


Which best explanation for the general rise of prices over time?

Inflation


An increase in consumer goods prices over time is called:?

inflation


When you just for inflation which is worth more?

Because inflation is the decrease in the value of a dollar over time, the "older" dollar is always worth more.


How do you define grade inflation?

Grade inflation is the increase over time of academic grades, faster than any real increase in standards.


What is a sentence for inflation?

Inflation of a ballon is what causes it to pop,which scares people


Q: What is inflation?

Inflation is the rate of increase in prices over a given period of time.


How do you calculate the average inflation rate?

To calculate the average inflation rate, you would add up the inflation rates for each year and then divide by the total number of years. This will give you the average inflation rate over the specified time period.


what currency is least affected by inflation?

Inflation is endemic in a capitalistic society. Different economies (currencies) are affected differently and over time there is no such thing as a safe currency.


What may inflation be defined as?

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.(In practice, the term monetary inflation is used to specifically refer to an increase in the money supply.)


How does inflation affect prices?

It causes the general price of products to slowly rise over time.