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How does inflation typically affect the purchasing power of money?
  • a)
    It decreases purchasing power.
  • b)
    It has no effect on purchasing power.
  • c)
    It increases purchasing power.
  • d)
    It stabilizes purchasing power.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
How does inflation typically affect the purchasing power of money?a)It...
Inflation decreases the purchasing power of money, meaning that consumers can buy fewer goods and services with the same amount of money compared to before inflation occurred. This change impacts real income.
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