A fall in the price level:
A)reduces the value of money in peoples' pockets, so people buy less goods.
B)reduces the value of money in peoples' pockets, so people buy more goods.
C)increases the value of money in peoples' pockets, so people buy less goods.
D)increases the value of money in peoples' pockets, so people buy more goods.

Question

Quizplus · Accepted Answer

A fall in the price level increases the purchasing power of money, meaning people can buy more goods with the same amount of money.

A Fall in the Price Level