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Answer: With the current high inflation rate, the value of Paz’s investments will possibly not increase at the same rate as the general level of inflation.
Paz watches the announcer on a financial television program state that the nation is now facing a high inflation rate. This will affect Paz’s investments as the value of Paz’s investments will possibly not increase at the same rate as the general level of inflation. Thus the correct option Is A.
What is inflation?
Inflation is referred to as a phenomenon when the prices of goods and services increase for a certain period of time which restricts the purchasing power of the individual is called inflation.
Inflation affects investments as when the prices are high it lowers the value of securities. It will be considered negative effects on the investment related to bonds and other securities.
Therefore, option A investments will possibly not increase at the same rate as the general level of inflation will be appropriate.
Learn more about inflation, here:
https://brainly.com/question/15692461
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