Other things being equal, the purchasing power of money is

Question

Quizplus · Accepted Answer

The purchasing power of money is inversely related to the price level. This means that as the price level increases, the purchasing power of money decreases, and vice versa. This relationship is often described by the concept of inflation, which refers to a general increase in the level of prices over time. When inflation occurs, the purchasing power of money is eroded, as the same amount of money can buy fewer goods and services than it could before.

Other Things Being Equal, the Purchasing Power of Money Is