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Which statement best describes how inflation affects the value of investments over time?
It erases the value of investments.
It increases the value of money.
It decreases the value of money.
It controls the value of investments.
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Answered by
GPT-5 mini
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It decreases the value of money.
Inflation reduces the purchasing power of money over time, so if an investment's return doesn't keep up with inflation its real value (what you can buy with it) falls.
Inflation reduces the purchasing power of money over time, so if an investment's return doesn't keep up with inflation its real value (what you can buy with it) falls.
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