Definition For Purchasing Power
Information and translations of purchasing power in the most comprehensive dictionary definitions resource on the web.
Definition for purchasing power. Extent to which a person firm or group has available funds to make purchases. The value of money considered as. The ability to purchase generally measured by income. If prices go up however then purchasing power will fall.
How to use purchasing power in a sentence. Purchasing power is the amount of goods and services that can be purchased with a unit of currency for example if one had taken one unit of currency to a store in the 1950s it would have been possible to buy a greater number of items than would be the case today indicating that the currency had a greater purchasing power in the 1950s. A person s purchasing power is their ability to buy goods. Purchasing power the amount of goods and services which can be purchased by a specified sum of money given the prices of those goods and services.
Meaning of purchasing power. Purchasing power is important because all else being equal. Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. The greater the quantity of products which can be bought with say 20 the greater is the purchasing power of that sum of money.
What does purchasing power mean.