The term inflation is used to describe a(n) :

A) rise in the value of money.
B) decline in nominal income.
C) sustained increase in the price level.
D) general reduction in prices.
E) economic problem faced only by the elderly population.

Inflation is a sustained increase in the general price level of goods and services in an economy. This means that prices are generally increasing over time, leading to a decline in the purchasing power of money. A rise in the value of money (A) would be deflation, while a decline in nominal income (B) may or may not be caused by inflation. A general reduction in prices (D) would be deflation. Finally, inflation is not an economic problem faced only by the elderly population (E), but affects all individuals and groups in an economy.