Answer:
If the inflation rate is positive, purchasing power is __reduced_____. The situation is reflected in the __low____ rate of return on an investment, which will be __reducing____ the __market____ rate of return.
Explanation:
Inflation is the general reduction in the value of a currency's purchasing power. It happens when more money is used to buy the same quantity of a good or service than was purchased previously. A currency's purchasing power is the value of the currency in terms of the goods or services that it can buy. Three factors reduce the purchasing power of a currency. They are government regulations, inflation, and disasters. On the other hand, deflation and technological innovations increase the currency's purchasing power.
