The value of money varies
A) inversely with the price level.
B) directly with the volume of employment.
C) directly with the price level.
D) directly with the interest rate.

Question

Quizplus · Accepted Answer

The value of money varies inversely with the price level, meaning as the price level increases, the value of money decreases, and vice versa. This is because when prices increase (inflation), each unit of currency buys fewer goods and services, thus reducing its value.

The Value of Money Varies