purchasing power
"Purchasing power" is a key concept in economics and finance that indicates the value of currency in acquiring goods and services.
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Definition
B2Economics
(technical, academic)The value of a currency in terms of the amount of goods and services it can buy.
Example
- Inflation reduces the purchasing power of money over time.
- An increase in purchasing power means you can buy more with the same amount of money.
B2Finance
(general)The financial ability to buy products and services.
Example
- Rising wages can boost the purchasing power of consumers.
- The purchasing power of the company allowed it to negotiate better deals.
B2Business
(corporate)The ability of a large group or company to negotiate more favorable prices and terms than a smaller entity.
Example
- Thanks to its purchasing power, the corporation secured a significant discount from suppliers.
Similar
Terms that have similar or relatively close meanings to "purchasing power":