First of all, it is important to know what Inflation means. Inflation is the decrease in value of money. That is why gas previously cost 10 cents per gallon. First, let us start off with the process of elimination.
A. Inflation will not reduce the price you pay, if anything, it will raise it.
B. If Inflation discouraged people from saving, then no one would ever save.
C. Inflation is the decrease in the amount it is worth, instead of buying one apple with 20 cents, you have to buy one apple with one dollar.
D. This is the only logical answer. If you have one dollar in your savings, its value is the same as a dollar in your pocket. This means that even though it is in your savings account, that does not mean it is worth the same.
Hope this Helps! :)
