If you have $5,000 in wealth and the price level decreases 20 per cent, then
A)the $5,000 will buy more goods and services.
B)the real value of the $5,000 decreases.
C)the real value of the $5,000 remains constant.
D)the $5,000 will buy fewer goods and services.

Question

Quizplus · Accepted Answer

When the price level decreases, the purchasing power of money increases, meaning the $5,000 can buy more goods and services.

If You Have $5,000 in Wealth and the Price Level