The correct answer is Decreases. The value of money during inflation decreases. Explanation & Key Takeaways: Inflation: • Inflation is a persistent rise in the price levels of goods and services leading to a fall in the currency’s purchasing power. • Causes of Inflation: • Printing too much money. • Increase in production cost. • Tax rises. • A decline in exchange rates. • War or other events causing instability. • Increase in money supply in the economy • Measures to Control Inflation: • Increasing the bank interest rates. • Regulating fixed exchange rates of the domestic currency. • Controlling prices and wages. • Providing cost of living allowances to citizens. • Regulating black and speculative market.