The amount of goods and services people can buy with the money they have is called the Purchasing power.
The worth of a currency is determined by how many goods or services one unit of that currency can be used to purchase. Inflation may cause it to deteriorate over time. This is due to the fact that you may acquire fewer items or services as a result of increased pricing. A currency's buying power is another name for its purchasing power.
The term "purchasing" or "buying power" in the context of investments refers to the dollar amount of credit that a client has in relation to the marginable securities that are currently in their brokerage account. The Consumer Price Index, which tracks changes in the prices of products and services over a period of months or years, assesses changes in consumer purchasing power.
The Consumer Price Index, which was first published in 1921 and is calculated each month using information gathered by the Bureau of Labor Statistics from the Census Bureau, shows changes in the cost of 400 carefully chosen commodities, ranging from food to housing. The Consumer Price Index, which measures changes in the prices of goods listed on it, offers the most accurate estimation of consumer spending power.
To know more Consumer Price Index here
https://brainly.com/question/12988188
#SPJ4
