Question

The statement "Today, the dollar is worth about 45 cents," describes

a.

inflation

b.

prices

c.

supply and demand

d.

taxation

e.

deflation

Answer 1

im pretty sure its inflation

Answer 2

Back in the day, a dollar was actually equal to a dollar. Now it's about 45 cent (according to this question). This is indeed inflation. Inflation means an increase in price and a fall in purchasing value of money.