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quester
2 months ago
9

Your grandmother tells you a dollar doesn’t go as far as it used to. She says the “purchasing power” of a dollar is much less th

an it used to be. Explain what she means. Try to use and explain terms like inflation and deflation in your answer.
English
1 answer:
Bond [7.5K]2 months ago
8 0
The purchasing power of a dollar decreases when more money circulates, reducing the value of each dollar and causing prices to rise; this effect is called inflation. Conversely, if less money is in circulation, the value of a dollar rises and prices drop, a situation known as deflation.
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