The tendency for prices to rise while the value of money fall is known as
Answer Details
The tendency for prices to rise while the value of money falls is known as inflation.
Inflation refers to a sustained increase in the general price level of goods and services in an economy over a period of time. When inflation occurs, the purchasing power of money decreases, meaning that the same amount of money can buy fewer goods and services than before.
For example, if the price of a loaf of bread was $1 last year and it is now $1.10, the value of money has decreased, and inflation has occurred. This is because it now takes more money to buy the same amount of bread.
Depreciation, on the other hand, refers to a decline in the value of an asset, such as a currency, over time. Deflation is the opposite of inflation and refers to a sustained decrease in the general price level of goods and services in an economy.