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Friday, 03 July 2026
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Inflation reduces the value of money because:

Inflation reduces the value of money because:
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Population declines steadily
  • B Production increases rapidly
  • C Prices rise continuously
  • D Goods become completely free
Correct Answer: Option C
Explanation:
As prices rise during inflation, the same amount of money can buy fewer goods and services. This reduces purchasing power.

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