According to "The Value of Money," what is one reason that inflation happens? There is a decrease in overall wages. Parts needed to make certain products become cheaper. The government decides to print less money. Supply shock makes goods and services hard to find.

Inflation can result from rising demand and reduces the value of money. Money loses value when its purchasing power falls. Since inflation is a rise in the level of prices, the amount of goods and services a given amount of money can buy falls with inflation.

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