THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Not having enough or any money to spend on items
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Having too much money to spend on items
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Having a less valuable dollar than other countries
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Having a more valuable dollar than other countries
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Detailed explanation-1: -Purchasing power loss or gain refers to the decrease or increase in how much consumers can buy with a given amount of money. Consumers lose purchasing power when prices increase. They gain purchasing power when prices decrease.
Detailed explanation-2: -Inflation is a rise in the cost of a broad range of consumer goods and services across multiple industries like gas, food and housing. Inflation makes your money worth less, so you’ll have to spend more for the same goods and services. In short, when inflation increases, your purchasing power decreases.
Detailed explanation-3: -Understanding 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) to measure the purchasing power.
Detailed explanation-4: -The purchasing power of currency is the quantity of goods and services that can be bought with a monetary unit. Because of rising prices, the purchasing power of currency deteriorates over time. Outside of the country, it drops in cases of depreciation and devaluation and increases with the opposite.