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प्रश्न
Purchasing power of money falls when ______.
पर्याय
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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