Question

Purchasing power of money is
(a) Reciprocal of price index number
(b) Equal to price index number
(c) Unequal to price index number
(d) None of these​

Answer 1

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. ... To approximate inflation (or deflation) the consumer price index is in general used.

Answer 2

Answer:

• B. Equal to price index number

Step-by-step explanation:

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