1 In finance and economics, it is tacitly assumed that inflation will continue, and will most probably continue indefinitely, with the following concomitant result:

The price of good and services such as food items, cars, services, and so on will increase indefinitely, the purchasing power of money, namely, the value of the $ will decrease indefinitely, and working wages and salaries will increase indefinitely.

a Discuss the rationale behind each of these phenomena.

b If these phenomena hold true indefinitely, show how one may, and should, allocate one’s assets, and manage one’s investment portfolios, so that one has a maximum opportunity to accumulate wealth.