Inflation leads to an increase in the purchasing power of money.

Name: Inflation leads to an increase in the purchasing power of money.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inflation is a sustained increase in the general price level of goods and services in an economy. As the prices of goods and services rise, the purchasing power of money decreases, meaning that it can buy fewer goods or services than before. Therefore, inflation leads to a decrease in the purchasing power of money, not an increase.

Inflation Leads to an Increase in the Purchasing Power of Money