Question

Last year, a music download cost $1.00. This year, it costs $1.30. The download is one of many commonly used goods and services whose prices rose because of _____. purchasing power interest rates inflation

Answer 1

This is because of inflation

Answer 2

Last year, a music download cost $1.00. This year, it costs $1.30. The download is one of many commonly used goods and services whose prices rose because of inflation.

Step-by-step explanation:

Inflation is the generalized and sustained increase in the level of prices in the market over a period of time, when the general level of prices increases. That is, inflation reflects the decrease in the purchasing power of the currency.