A country's currency unit changes in purchasing power:

Question

Quizplus · Accepted Answer

A country's currency unit can change in purchasing power due to either inflation (when prices of goods and services rise) or deflation (when prices of goods and services fall). Therefore, option C, which states that it can happen due to either inflation or deflation, is the correct choice. Option A, which states that it only happens during inflation, is incorrect. Option B, which states that it only happens during deflation, is also incorrect. Option D, which states that it does not happen in either case, is false.

A Country's Currency Unit Changes in Purchasing Power