Which of these best describes the meaning of inflation?
Choose only ONE best answer.
A
The interest rate at which national central banks lend money to domestic banks.
B
The rate at which the prices of goods and services rise. When an economy experiences inflation, each unit of currency buys fewer goods and services. Inflation is the primary reason products cost more today than decades ago.
C
The overall amount of goods and services produced within a particular economy in a given period.
