The ability to purchase goods and services or the amount of goods and services that one unit of money can buy. During times of inflation, purchasing power decreases when money is held because of a decline in the value of the currency. In other words, creditors lose while borrowers gain.
The amount of goods that money will buy, usually measured (inversely) by the CPI.
The amount of goods and services that a monetary unit of income can buy. View Capstone Lesson(s) that address this concept
The extent to which a sum of money or benefit retains its ability to purchase goods or services over a period of time. Investors generally aim to improve or at least preserve the purchasing power of their money or assets against increases in the inflation rate over time.
The value of money measured in terms of what one can buy with it.
A measurement of the relative value of money in terms of the quality and quantity of goods and service it can buy. Inflation decrease purchasing power; deflation increases it.
In simplified terms, the purchasing power can be described as the sum of all net incomes in a certain territory. It is therefore an important indicator for the consumer potential of the population living in this territory. It remains to be considered, however, that the purchasing power is often not employed where people live but where they spend their money.
The value of money, as measured by the quantity and quality of products and services it can buy. Also called buying power.
The ability to buy goods and services
The value of money measured by the amount of goods and services it can buy.... read full article
The ability of consumers to acquire goods and services based on their possession of money and/or their recourse to credit. Aggregate purchasing power within a market or a national economy reflects total disposable income after taxes, and hence the level of employment. See also Consumers; Consumption; Credit; Demand; Inflation; Money; Price Elasticity of Demand.
When determining cost of living, an index must be referred to that determines the strength of the dollar for the purchasing of goods and services. Pure Endowment - An amount of money that is only paid to the individuals who remain living for a specific period of time. If they do not live for the certain time period, they do not receive any of the endowment. This is typically illegal, unless it is combined with a form of LIFE INSURANCE.
The ability to use a certain sum of money to buy a physical asset. For example, $100 usually will buy more staple goods (food, transport, clothing) in a developing economy than it will in the capital city of an advanced economy, where living costs can be expected to be higher. But anomalies abound.
A measure of money's value in terms of what it can buy. Purchasing power tends to change over time, mainly because of inflation . Also called "buying power."
Goods and services that can be bought with money income
A measure of the amount of goods and services a dollar can buy, as compared to prior periods. Inflation decreases purchasing power, whereas deflation increases it.
The amount of goods or services that one unit of money or one unit of an asset can buy.
The amount of goods a given amount of money can buy at any given time. This can be eroded by inflation.
In economics, purchasing power refers to the amount money — or, more generally, liquid assets — can buy. As Adam Smith noted, having money gives one the ability to "command" others' labor, so purchasing power to some extent is power over other people, to the extent that they are willing to trade their labor or goods for money.
