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1. Due to inflation, purchasing power of money ---
- A. increases
- B. increases
- C. increases
- D. increases
Answer: Option B
Explanation:
Understanding Purchasing Power
Inflation reduces the value of a currency's purchasing power, having the effect of an increase in prices. To measure purchasing power in the traditional economic sense, you would compare the price of a good or service against a price index such as the Consumer Price Index (CPI).
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