What has to be higher for you to have higher purchasing power?

Question

Quizplus · Accepted Answer

Disposable income is the income remaining after taxes and other necessary expenses have been paid. This is the money that can be used for discretionary spending, including purchasing goods and services. Therefore, having a higher disposable income will result in higher purchasing power.

Answer: D) gross income
 Gross income is the total amount of money earned before taxes and other deductions are taken out. While gross income does not necessarily translate directly to purchasing power, it can serve as an indicator of potential earning power. Additionally, having a higher gross income may increase the likelihood of being approved for loans or credit, which can also contribute to purchasing power.

Option B) social class is not a factor that can increase purchasing power as social class more often defines a person's distinction and status in the society- which doesn't necessarily translate into higher purchasing power.
Option C) cost of living is a factor that can affect purchasing power as it has a direct relation on a person's expenses. However, it is not necessary that a higher cost of living will increase the purchasing power.

What Has to Be Higher for You to Have Higher