Inflation is a(n) _____ in the prices of many goods and services, which _____ purchasing power.
a. increase, decreases
b. increase, increases
c. decrease, decreases
With the inflation the value of the money will decrease with time, which means that now more money is needed to buy the same things since the value of the money is less now - so the prices will increase. And the purchasing power of the money will decrease - the correct answer is a)
