Does it matter if inflation is 4% or 2%? Why or why not?
a. Yes, it matters because a higher inflation rate of 4% will erode purchasing power more quickly than a 2% inflation rate.

b. No, it doesn't matter because both inflation rates still represent a decrease in the purchasing power of money over time.

c. Yes, it matters because a higher inflation rate can lead to economic instability and impact investment decisions.

d. No, it doesn't matter because individuals and businesses can adjust their financial strategies to account for either inflation rate.