How will the purchasing power of an income of $30,000 be affected if inflation increases?
A) It will be able to buy more.
B) It will be taxed more.
C) It will be taxed less.
D) It will be worth more than $30,000.
E) It will be able to buy less.

Question

Quizplus · Accepted Answer

Inflation reduces the purchasing power of money, meaning that the same amount of money will buy fewer goods and services than before.

How Will the Purchasing Power of an Income of $30,000