A. net investment parity
B. inflation
C. purchasing parity
D. buying parity
✅ The correct answer is option B.
Decrease in purchasing power of any monetary unit such as euro, dollars etc. is classified as inflation. Price Inflation is when prices get higher or it takes more money to buy the same item and this is what people commonly think of when they hear the word inflation.
Decrease in purchasing power of any monetary unit such as euro, dollars etc. is classified as inflation. Price Inflation is when prices get higher or it takes more money to buy the same item and this is what people commonly think of when they hear the word inflation.