Question

As inflation increases, it causes the money you earn today to have _______
A more value in the future
B less value in the future
C more purchasing power in the future
D no purchasing power effect in the future

Answer 1

if you work and make $10 per hour, in 1hr you have $10

if you earn $10 per hour in April, in 1 hr you'll have $10 in April
say a hamburger costs $5 in April, so you can buy 2 hamburgers in April


if you earn $10 per hour in November, in 1 hr you'll have $10 in November
say the hamburgers' price in November went up, used to be $5, now each cost $7
so in with $10 in November you can't really buy 2 hamburgers like you did in April

the price changes in prices, as they go UP, is also called INFLATION

so... what do you think?

Answer 2

B less value :(

so if you didn't get a raise last year, essentially you took a pay cut
aka most teachers unfortunately

Answer 3

ehehh, sometimes you don't have to earn less to buy less =)

all that needs to be done is the prices just go up