Concept:Inflation reduces the purchasing power of money, making saving less attractive than immediate consumption.
Explanation:During inflation, the general price level rises continuously.
This means the same amount of money buys fewer goods over time.
If an individual saves money, its real value falls because future purchasing power is lower.
Therefore, people prefer to spend now on goods and services rather than keep savings that lose value.
Hence, consumption increases during inflationary periods.
Answer:A. The real value of any amount saved falls over time