With reference to Inflation, which of the following statement is not correct?

A. Inflation leads to rise in prices

B. Inflation means more purchasing power

C. Inflation means erosion of money value

D. Inflation plays havoc

Answer: Option B

Solution(By Examveda Team)

Inflation means more purchasing power. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase.