The Purchasing Power of Money Increases When

question 273

Multiple Choice

The purchasing power of money increases when

• A) the inflation rate increases.
• B) there is inflation.
• C) there is deflation.
• D) there are more dollars in the economy.

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Definitions:

Net Proceeds

The amount of money received from a sale after all costs and expenses have been paid.

Trade Discount

A reduction in the listed price of goods or services offered by a vendor to buyers in the same trade.

Personal Video Recorder

An electronic device or software application that records video in a digital format to a disk drive or other memory medium within a device.

Suggested Retail Price

The price that manufacturers recommend retailers to sell their products for to consumers.