An increase in the price level lowers the real value of wealth.

Name: An increase in the price level lowers the real value of wealth.
Brand: Quizplus
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Question

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When the price level increases, the purchasing power of money decreases, which means that each unit of currency can buy fewer goods and services. This decrease in purchasing power also means that the real value of wealth (i.e. the purchasing power of assets such as savings or investments) decreases.

An Increase in the Price Level Lowers the Real Value