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    Question

    Which of the following terms refers to the decrease in

    the purchasing power of a currency?
    A Inflation Correct Answer Incorrect Answer
    B Deflation Correct Answer Incorrect Answer
    C Depreciation Correct Answer Incorrect Answer
    D Appreciation Correct Answer Incorrect Answer
    E Recession Correct Answer Incorrect Answer

    Solution

    Inflation refers to the general increase in prices, leading to a decrease in the purchasing power of a currency.

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