Question

A rise in the prices of goods and services is called _____. This decreases purchasing power.

inflation
a tariff
interest rates

Answer 1

Inflation is the correct answer

Step-by-step explanation:

Odyssey ware

Answer 2

The right answer is the first option inflation. Inflation is defined as the sustained increase of prices, month after month. Inflation has a negative impact on your purchasing power becasue you will be able to buy less goods and services with the same money.