If the price level rises, the purchasing power of wealth
A) does not change.
B) decreases.
C) increases.
D) increases at first but in the long run decreases.

Name: If the price level rises, the purchasing power of wealth A) does not change. B) decreases. C) increases. D) increases at first but in the long run decreases.
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Question

Quizplus · Accepted Answer

When the price level rises, the purchasing power of wealth decreases. This means that the same amount of money can purchase fewer goods and services than before.

If the Price Level Rises, the Purchasing Power of Wealth