Changes in the general level of prices within an economy produce:
A) business risk.
B) financial risk.
C) market risk.
D) purchasing power risk.
E) liquidity risk.

Question

Quizplus · Accepted Answer

Changes in the general level of prices within an economy produce purchasing power risk as the value or purchasing power of currency can decrease or increase depending on the inflation or deflation in the economy.

Changes in the General Level of Prices Within an Economy