What effect does inflation have on the prices of goods and services? A. Prices decrease.
B. Prices double.
C. Prices increase.
D. Prices stay the same.
Question & Answer
What effect does inflation have on the prices of goods and services?
1 Answer
Verified archiveC. Prices increase.
Inflation refers to the general rise in prices of goods and services over time. When inflation occurs, each unit of currency buys fewer goods and services, leading to an increase in prices. Therefore, the correct choice is that prices increase.