Purchasing Power of Money

the capacity of a monetary unit to be exchanged for a certain quantity of goods. It is expressed in the exchange ratios that form between money and goods. The purchasing power of money depends on factors related both to goods (changes in the cost or prices) and money (changes in the cost of the metal used for coins and, for paper money, change in the amount in circulation). The purchasing power of money is closely connected with the effective monetary demand of the population. [20–499–1)

单词	purchasing power of money
释义	Purchasing Power of Money Purchasing Power of Money the capacity of a monetary unit to be exchanged for a certain quantity of goods. It is expressed in the exchange ratios that form between money and goods. The purchasing power of money depends on factors related both to goods (changes in the cost or prices) and money (changes in the cost of the metal used for coins and, for paper money, change in the amount in circulation). The purchasing power of money is closely connected with the effective monetary demand of the population. [20–499–1)
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