Other things being equal,a rise in the price level will

Question

Quizplus · Accepted Answer

When the price level rises, the purchasing power of money decreases because the same amount of money can buy fewer goods and services. Therefore, option B is the correct answer. Option A is incorrect because when the price level rises, the value of money decreases. Option C is incorrect because a rise in the price level can cause instability in the value of money. Option D is incorrect because a rise in the price level decreases the purchasing power of money. Option E is incorrect because a rise in the price level has an effect on the value of money.

Other Things Being Equal,a Rise in the Price Level Will