The value of money ________ when the price level increases.
A) increases
B) decreases
C) initially increases but then decreases
D) initially decreases but then increases
E) does not change

Question

Quizplus · Accepted Answer

When the price level increases, the purchasing power of money decreases, meaning that you can buy fewer goods and services with the same amount of money. Therefore, the value of money decreases.

The Value of Money ________ When the Price Level Increases