Why would an individual increase his level of consumption during inflationary periods?

Economics

WAEC 2013

A. The real value of any amount saved falls over time
B. Interest rates are generally low
C. There are varieties of goods to buy
D. Wages and salaries stagnate during inflation

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Correct Answer: Option A

Explanation

Because during inflation, much money is used to buy few goods. The value of money drops and the need to satisfy an individual's want rises. Money spent in buying basic goods increase.

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Why would an individual increase his level of consumption during inflationary periods?

Correct Answer: Option A

Explanation

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