How many years will it take for the dollar's purchasing power to be one-thirdwhat it is now, if the general inflation rate is expected to continue at the rate of 7% for an indefinite period?(a) About 10 years(b) About 12 years(c) About 13 years(d) About 16 years

How many years will it take for the dollar's purchasing power to be one-thirdwhat it is now, if the general inflation rate is expected to continue at the rate of 7% for an indefinite period?(a) About 10 years(b) About 12 years(c) About 13 years(d) About 16 years

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Question

How many years will it take for the dollar's purchasing power to be one-third
what it is now, if the general inflation rate is expected to continue at the rate of 7% for an indefinite period?
(a) About 10 years
(b) About 12 years
(c) About 13 years
(d) About 16 years

Definition Definition Value of one unit of currency in terms of goods and services. Purchasing power refers to the ability of money to purchase goods and services at a particular point of time. As price levels in the economy increase, the purchasing power of one unit of currency decreases and vice versa.

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