15

Select the correct answer.

Which statement describes the effect of inflation on purchasing power?

O A.

As the rate of inflation remains constant, purchasing power increases.

OB.

As the rate of inflation remains constant, purchasing power stays the same.

O C.

As the rate of inflation increases, purchasing power increases.

O

D.

As the rate of inflation increases, purchasing power decreases.

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Question

Guest

Mathematics

25 February, 11:48

15

Select the correct answer.

Which statement describes the effect of inflation on purchasing power?

O A.

As the rate of inflation remains constant, purchasing power increases.

OB.

As the rate of inflation remains constant, purchasing power stays the same.

O C.

As the rate of inflation increases, purchasing power increases.

O

D.

As the rate of inflation increases, purchasing power decreases.

Reset

Next

+4

Answers (1)

Know the Answer?

Shane Robinson · Answer 1

C. As the rate of inflation increases, purchasing power increases.

Step-by-step explanation:

As inflation constantly changes the value of a dollar, the purchasing power of the dollar goes up or down depending on whether inflation rises or falls.