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7 March, 12:09

Nelly's grandparents are on a fixed income. Which of the following is true?

Inflation does not affect their purchasing power.

Inflation causes their purchasing power to go up.

Inflation causes their purchasing power to go down.

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  1. 7 March, 14:52
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    With Nelly's grandparents being on a fixed income, inflation will cause their purchasing power to go down. Since inflation causes prices to raise, they will not be able to purchases things like before. The correct answer is C.
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