Due to inflation, purchasing power of money ---

Due to inflation, purchasing power of money --- Correct Answer decrease

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).
Bissoy MCQ

Related Questions

Read the following.
Unions demand high wages to counter inflationary pressures on the economic conditions of the working class. Higher wages enhance the purchasing power of the workers, there by raising inflation.
Which of the following inferences are wrong?
1. Unions have the sole purpose of improving the economic conditions of workers.
2. Enhanced wages increase the purchasing power of workers.
3. Inflation and purchasing power are negatively correlated.
4. Inflation drives unions to go for demanding higher wages.
Consider the following with respect to the term 'Core Inflation': A) Core Inflation is the inflation rate of a particular basket of commodities. B) Core Inflation is the sudden increase in prices of certain items of food grains.C) Core inflation is caused by supply shock in certain essential commodities.
Due to inflation, purchasing power of money-
Due to inflation purchasing power of money:
মুদ্রাস্ফীতি ঘটলে অর্থের মূল্য বা জনগণের ক্রয় ক্ষমতার কী হয়? (What happens to the value of money or people's purchasing power when inflation occurs?)
With reference to inflation, which of the following statement is/are correct?
1. Expansion of credit increase inflation
2. Inflation leads favourable trade surplus
Select the correct answer
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer:
Assertion (A) The nominal interest rate comprises of a real interest rate and an expected rate of inflation and it adjusts when the inflation rate is expected to change. Hence, in the perfect international capital markets, real rate of returns are equal in the two countries.
Reason (R) The international fisher effects states that the nominal interest rate differential must be equal to the expected inflation rate differential In the two countries.
In the Money market which of the following statement's is/are incorrect?
1. The call money market deals in short-term finance repayable on demand, with a maturity period varying from one day to 14 days.
2. Treasury bills are instruments of short-term borrowing by the Government of India, issued as promissory notes under discount.
3. A reduction in the repo rate helps banks to get money at a cheaper rate.
4. Money market mutual funds invest money in specifically, high-quality and very short maturity based money market instruments.
If the rate of inflation for the next 20 years is 2.5% per year, what annual income will be needed 20 years from now to have the same purchasing power as a $30,000 annual income today?
Rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as