6. How would inflation and deflation affect purchasing power?

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asked Jul 26, 2022 61.7k views

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Dave Stein · Answer 1 · 2022-07-30T09:27:23+0000

Answer:

Inflation erodes purchasing power or how much of something can be purchased with currency. Because inflation erodes the value of cash, it encourages consumers to spend and stock up on items that are slower to lose value. It lowers the cost of borrowing and reduces unemployment.

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6. How would inflation and deflation affect purchasing power?

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6. How would inflation and deflation affect purchasing power?