QuestionAugust 11, 2025

12. What causes purchasing power to increase or decrease? Inflation Taxes Number of stores Savings plans

12. What causes purchasing power to increase or decrease? Inflation Taxes Number of stores Savings plans
12. What causes purchasing power to increase or decrease?
Inflation
Taxes
Number of stores
Savings plans

Solution
4.1(271 votes)

Answer

Inflation, Taxes Explanation 1. Identify Factors Affecting Purchasing Power Inflation and taxes directly affect purchasing power. Inflation decreases purchasing power as prices rise, while higher taxes reduce disposable income. 2. Evaluate Other Options The number of stores and savings plans do not directly impact purchasing power. They may influence consumer choices but not the overall purchasing power.

Explanation

1. Identify Factors Affecting Purchasing Power<br /> Inflation and taxes directly affect purchasing power. Inflation decreases purchasing power as prices rise, while higher taxes reduce disposable income.<br /><br />2. Evaluate Other Options<br /> The number of stores and savings plans do not directly impact purchasing power. They may influence consumer choices but not the overall purchasing power.
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