WAEC - Economics (2013 - No. 16)
Why would an individual increase his level of consumption during inflationary periods?
The real value of any amount saved falls over time
Interest rates are generally low
There are varieties of goods to buy
Wages and salaries stagnate during inflation
Spiegazione
Because during inflation, much money is used to buy few goods. The value of money drops and the need to satisfy an individual's want rises. Money spent in buying basic goods increase.