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प्रश्न
Purchasing power of money falls when ______.
विकल्प
Prices decrease
Prices increase
Income increases
Supply of money falls
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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
Observe the relationship of the first pair of words and complete the second pair.
During inflation the debtors gain.
During inflation the ______ lose.
State running inflation impact on fixed income groups.
Mention the effect of inflation on the value of money.
Why do producers gain in the short run during inflation?
Discuss the effects of inflation on production.
How does inflation affect the following?
Debtors and creditors
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?
Explain the impact of inflation on producers in the short run.
