By definition, the purchasing power of money always drops when
A) inflation occurs.
B) deflation occurs.
C) the economy is experiencing full employment.
D) there is a presidential election year.

Question

Quizplus · Accepted Answer

Inflation is the general increase in prices of goods and services in an economy over time. This means that the same amount of money can purchase fewer goods and services than before, resulting in a decrease in the purchasing power of money.

By Definition, the Purchasing Power of Money Always Drops When