Question

Which statement best describes the relationship between inflation and
savings?
A. As savings grow faster than inflation, the savings will buy less.
B. As inflation increases faster than savings, the savings are worth
less.
O C. As savings grow slower than inflation, the savings will buy more.
D. As inflation decreases faster than savings, the savings are worth
more.

Answer 1

Answer:

B. AS savings grow fast than inflation, the savings the savings are worth less.

Explanation:

This is because Over time, inflation can reduce the value of your savings, because prices typically go up in the future. This is most noticeable with cash. If you keep $10,000 under your bed, that money may not be able to buy as much 20 years into the future.

Answer 2

The statement that best describes the relationship between inflation and savings is that: As inflation increases faster than savings, the savings are worthless.

What is Inflation?

Inflation can be defined as a decrease in the purchasing power of money that is reflected in a general increase in the prices of goods and services in an economy.

The relationship between inflation and savings can be described as a point where inflation increases faster than savings, the savings would be worthless.

Learn more about Inflation here:

https://brainly.com/question/1082634