Question

according to a 2020 report by the world bank, inflation erodes the purchasing power of money over time. when prices rise faster than wages, the same income buys fewer goods and services. ___ inflation makes each dollar less valuable than it was before.
22
which choice completes the text with the most logical transition?
a of course,
b that is,
c similarly,
d on the other hand,

Explanation:

The sentence before the blank explains that inflation erodes purchasing power (same income buys fewer goods when prices rise faster than wages). The sentence after the blank says inflation makes each dollar less valuable. The second sentence is rephrasing or clarifying the first idea. "That is" is used for clarification or rephrasing. "Of course" implies agreement to a known fact, not clarification. "Similarly" is for showing a similar situation, but here it's the same idea rephrased. "On the other hand" is for contrasting, which is not the case here. So "That is" is the most logical transition.

Answer:

B. That is