Money serves as a medium of exchange, a unit of account, and a store of value. If inflation occurs, money as a medium of exchange will begin to lose its value as people recognize that the good they receive in exchange for money is decreasing in quantity or quality. As a unit of account, during inflation, prices will no longer accurately represent a good's value. Lastly, money as a store of value will decrease during inflation because the supply of money will have increased, and it will take more money to buy a good or service