Question

How does money increases its purchasing power in deflation​

Answer 1

Answer:

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Explanation:

It is the opposite of inflation, which is when general price levels in a country are rising. In the short-term, deflation impacts consumers positively because it increases their purchasing power, allowing them to save more money as their income increases relative to their expenses

Answer 2

Answer:

When the index in one period is lower than in the previous period, the general level of prices has declined, indicating that the economy is experiencing deflation. This general decrease in prices is a good thing because it gives consumers greater purchasing power.

Explanation:

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