Purchasing power refers to the amount of goods and services that can be bought with a given amount of money. It is influenced by factors such as inflation, exchange rates, and the overall cost of living. Understanding purchasing power is important for individuals and businesses to make informed financial decisions.
Purchasing power can vary significantly depending on the country or region. For example, the purchasing power of $100 in the United States may be much higher than the purchasing power of the same amount in a developing country. This is because the cost of living, including expenses such as housing, food, and transportation, can vary greatly from place to place.
