单词 | purchasing power |
释义 | purchasing powerpur·chas·ing power(pûr′chĭ-sĭng)purchasing powerPurchasing powerPurchasing Power2. The dollar amount of securities one can buy on a margin account. Different jurisdictions have different rules on how to measure purchasing power. purchasing powerpurchasing powerthe amount of goods and services which can be purchased by a specified sum of money, given the prices of those goods and services. The greater the quantity of products which can be bought with, say, £20, the greater is the purchasing power of that sum of money. If prices go up (INFLATION), however, then purchasing power will fall. What is important for people and business is the long-run relationship of prices and the amount of money they have available to spend. If prices double, for example, but because people's wages are INDEX-LINKED, (i.e. related to a PRICE INDEX), wages also double, then purchasing power remains unchanged.purchasing powerthe extent to which a given monetary unit can buy goods and services. The greater the amount of goods and services purchased with, say, £10, the greater is its purchasing power. Purchasing power is directly linked to the RETAIL PRICE INDEX and can be used to compare the material wealth of an average individual from a previous time period with the present. See INFLATION, PURCHASING-POWER PARITY THEORY. |
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