Final answer:
Jessie's grandfather is suggesting that a dollar had more purchasing power during his youth because of the effects of inflation over time, causing a reduction in what can be purchased with the same amount of money.
Step-by-step explanation:
Jessie's grandfather is implying that a dollar had more purchasing power when he was young compared to today. This is due to inflation, where the value of a currency decreases over time, thus reducing how much can be purchased with the same amount of money. As prices for goods and services increase, each dollar can buy fewer items, illustrating a loss in purchasing power.
For example, imagine a U.S. tourist planning a trip abroad with a budget saved in U.S. dollars. If the U.S. dollar gains strength compared to the destination's currency, the tourist benefits by receiving more foreign currency per U.S. dollar, hence decreasing the overall cost of the trip in terms of U.S. dollars. Conversely, a strong U.S. dollar can be disadvantageous for tourists coming to the United States, as their home currency converts to fewer U.S. dollars.