Inflation measures:
A)how price changes impact interest rates.
B)how the purchasing power increases due to increasing interest rates.
C)changes in nominal interest rates.
D)changes in real interest rates.
E)how purchasing power declines due to increasing prices.

Question

Quizplus · Accepted Answer

Inflation measures how purchasing power declines due to increasing prices. It tracks the rise in prices of goods and services over time and the impact it has on the economy.

Inflation Measures