Purchasing power

Question

Purchasing power

Quizplus · Accepted Answer

Purchasing power is the ability of a currency to buy goods and services. It reflects the number of goods and services that can be acquired with a given amount of money. Therefore, option A is the best choice. Option B is incorrect as it refers to the nominal value of purchases, which does not take into account inflation or changes in purchasing power. Option C is incorrect because it refers to the increase in prices, which can reduce purchasing power. Option D is also incorrect because it refers to changes in consumption patterns, which may be influenced by factors other than purchasing power.

Purchasing Power