Question

The purchasing power of peoples' income is most affected by what?

a.The rate of inflation
b.The trade deficit
c.The balance of payments
d.The value of foreign currency

Answer 1

a.The rate of inflation

Step-by-step explanation:

Inflation means rise in the consumer price index i.e. the weighted average of prices belong to the different kinds of goods. It could be measured by taking the difference of CPI and dividing it by the previous year CPI

The rate of inflation would be most impacted to the purchasing power of people income

Therefore the option a is correct