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How does inflation affect savings?
  • a)
    Inflation encourages people to save more
  • b)
    Inflation discourages people from saving
  • c)
    Inflation has no impact on savings
  • d)
    Inflation only affects long-term savings
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
How does inflation affect savings?a)Inflation encourages people to sav...
Inflation discourages people from saving because the value of money decreases over time. When prices rise, the purchasing power of savings decreases, leading to a decline in real savings.
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How does inflation affect savings?a)Inflation encourages people to save moreb)Inflation discourages people from savingc)Inflation has no impact on savingsd)Inflation only affects long-term savingsCorrect answer is option 'B'. Can you explain this answer?
Question Description
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