Which statement best describes how inflation affects the value of investments over time? it erases the value of investments. it increases the value of money. it decreases the value of money. it controls the value of investments.

Inflation, by definition, is "the rise of the pricing level of commodities." Furthermore, it can significantly affect investment values because it decreases the value of money. Such phenomenon is called devaluation, and there are often times that the government would likely set a new currency fixed rate.