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प्रश्न
Purchasing power of money falls when ______.
विकल्प
Prices decrease
Prices increase
Income increases
Supply of money falls
उत्तर
Purchasing power of money falls when Prices increase.
Explanation:
When prices rise, the purchasing power of money decreases because you can buy less for the same money. Inflation raises prices, reducing the real value or purchasing power of money.
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संबंधित प्रश्न
Explain how taxes can bring about equality in income distribution.
Examine any three adverse or evil effects of inflation on production.
Identity the correct statement from the following:
______ are worst affected during the period of inflation.
State the effect of inflation on creditors.
Why do producers gain in the short run during inflation?
How does inflation affect the distribution of income?
How does inflation affect the following?
Farmers
Which section of society gains due to inflation? Why?
Which section of the society is worst affected during inflation? Why?
