What happens during inflation?

a the value of a dollar does not change.

b prices fall and people start spending again.

c there's more money in circulation and the prices rise.

d people have less income.

What usually happens when there is inflation in a country as regards this ques is that B: There's more money in circulation and the prices rise.

Inflation can be regarded as  measurement of how the prices of good as well as services is going higher. It usually happen when the price of goods increases as a result of increase in the  cost of production.

These cost of production could be

raw materials

wages

Labor cost

However ever , when there is very high  increase in demands, then inflation can comes in because the consumer has willingness to pay more for a particular product.

Therefore, option B is right.

i believe your answer is d)