which statement best describes how inflation affects the value of investments over time?\nit erases the…
which statement best describes how inflation affects the value of investments over time?\nit erases the value of investments.\nit increases the value of money.\nit decreases the value of money.\nit controls the value of investments.
Answer
Brief Explanations:
Inflation is the general increase in prices and fall in the purchasing - power of money. As prices rise, the same amount of money can buy fewer goods and services, thus decreasing the value of money. This also impacts investments as the real value (value adjusted for inflation) of returns may be lower.
Answer:
It decreases the value of money.