In case of high inflation, the purchasing power of money goes____.

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Down

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Remains the same

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Cannot be determined

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Solution

The correct option is B
Down

The purchasing power of money goes down when there is high inflation as the prices of various commodities rise, we can purchase less and less amount in the same price.

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Similar questions

Q10) The problems of high inflation is/are

i) It reduces the purchasing power of the people

ii) It increases the savings in a country

iii) Interest rates goes up

iv) Investments increases

Choose the correct answer

Q22. The problems of high inflation is/are

1. It reduces the purchasing power of the people

2. It increases the savings in a country

3. Interest rates go up

4. Investments increases

Choose the correct answer:

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