Question

Changes in the buying power of the dollar are measured by

Group of answer choices


the unemployment rate


the money supply


the consumer price index


interest rates

Answer 1

Answer: the consumer price index

Step-by-step explanation:

Hi, the consumer price index (CPI) is a measure of the average variation of price paid by consumers for a market basket of consumer goods and services.

The buying power of the dollar has a negative correlation with the CPI. If the CPI increases, the buying power of the dollar decreases.

So, the CPI can be used as a measure for the buying power of the dollar.