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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.



Answer :

GinnyAnswer

Final answer:

Inflation decreases the value of money over time, impacting the value of investments.


Explanation:

Inflation affects the value of investments over time by decreasing the value of money. As prices rise due to inflation, the purchasing power of money decreases, leading to a reduction in the real value of investments.


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