In an article in the Wall Street Journal , a professor of financial planning noted the effect of rising prices on purchasing power: "Today, $2,000 a month seems reasonable [as an income for a retired person in addition to the person's Social Security payments], but 40 years from now that's going to be three cups of coffee and a donut."

Question

Crystal Nielsen

Business

10 November, 00:59

In an article in the Wall Street Journal , a professor of financial planning noted the effect of rising prices on purchasing power: "Today, $2,000 a month seems reasonable [as an income for a retired person in addition to the person's Social Security payments], but 40 years from now that's going to be three cups of coffee and a donut."

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Answers (1)

Know the Answer?

Konnor Holmes · Answer 1

The answer is: Inflation rate

Explanation:

Inflation rate measures the rate at which the average prices in an economy increases over time.

As the general level of prices rise in an economy, a unit of currency buys less than it did before. For example, 100 years ago you could buy a new car for less than $300.