Macroeconomics 20th Edition by Campbell McConnell,Stanley Brue,Sean Flynn

تمرين 13

Recall the formula that states that $V = 1/P, where V is the value of the dollar and P is the price level. If the price level falls from 1 to 0.75, what will happen to the value of the dollar?
A) It will rise by a third (33.3 percent).
B) It will rise by a quarter (25 percent).
C) It will fall by a quarter (-25 percent).
D) It will fall by a third (-33.3 percent).