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30 September, 00:37

Changes in the buying power of the dollar are measured by

Group of answer choices

the unemployment rate

the money supply

the consumer price index

interest rates

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Answers (1)
  1. 30 September, 02:41
    0
    Answer: the consumer price index

    Explanation:

    Hi, the consumer price index (CPI) is a measure of the average variation of price paid by consumers for a market basket of consumer goods and services.

    The buying power of the dollar has a negative correlation with the CPI. If the CPI increases, the buying power of the dollar decreases.

    So, the CPI can be used as a measure for the buying power of the dollar.
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