Question

If the inflation rate is positive, purchasing power . This situation is reflected in the rate of return on an investment, which will be the rate of return.

Answer 1

Answer:

If inflation rate is positive, purchasing power of money decreases thus the rate of returns on investment decreases.

Step-by-step explanation:

When the prices of goods and services are averagely increasing we say that inflation is positive.Purchasing power is high when a currency value is able to purchase more goods and services as per unit of money can buy.when inflation is positive, the amounts of goods and services that can be purchased is reduced.