The value of your money income, in terms of buying goods and services, is referred to as your...

Question:

The value of your money income, in terms of buying goods and services, is referred to as your money's:

a. transaction cost

b. rigidity factor

c. staying power

d. purchasing power

Income

Income is the payment an individual receives for the work or service provided in producing a good or providing a service. It is in cash, coins, goods, deposits in banks, etc.

Answer and Explanation: 1

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The correct option is d. purchasing power

Money income refers to the currency in hand with which an individual can purchase goods and services for...

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What is Purchasing Power? - Definition & Parity Theory

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Chapter 5 / Lesson 13
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Purchasing power measures the value of money through the amount of goods and services that can be purchased from one monetary unit. Learn about the definition of purchasing power and the purchasing power parity theory, as well as the two price level types within the purchase power parity.


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