You are requested to give suggestions on increasing the purchasing power of your country. Which of the following will be advisable to get the desired results?

Try to increase the value of currency.

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Try to decrease the value of currency.

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Try to increase the general price levels.

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Try to decrease the general price levels.

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Solution

The correct option is D Try to decrease the general price levels.
When prices increase, the purchasing power of people decreases, which subsequently leads to a decline in the value of a currency. Therefore, a reduction of price levels and an increase in the value of a currency can lead to a rise in purchasing power.

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