Navigating the Impact of Inflation on Your Finances

What did Jennifer's grandma initially give her?

• A book

• $5

• A movie ticket

• A hug

What could $5 buy in the past according to grandma?

• Just a movie ticket

• A small snack

• Only popcorn

• A movie ticket and 34 hamburgers

What is inflation?

• Decrease in money value

• Increase in money supply only

• Rise in general price level

• Decrease in goods quantity

What happens when the demand for a product increases but production remains the same?

• Price decreases

• Price remains the same

• Price increases

• Production magically increases

What could cause the production costs of a product to increase?

• Improved technology

• Decreased demand

• A bad year for raw materials

• Increased competition

How does an increase in money supply affect prices?

• Prices fluctuate

• No change in prices

• Prices decrease

• Prices increase

What did grandma say about the wages in her days compared to movie ticket prices?

• Wages were lower than movie prices

• Wages were high

• There was no minimum wage

• Wages were about the same as movie prices

Why is it important to consider inflation in financial planning?

• To increase wealth quickly

• To maintain purchasing power

• To impress friends

• To avoid taxes

What did Jennifer and her grandma plan to do at the end of their conversation?

• Read a book

• Watch a movie

• Go shopping

• Take a selfie

What social media did grandma mention she would use?

• Twitter

• Instagram

• Snapchat

• Facebook