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

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

Quizplus · Accepted Answer

When the price level rises, the purchasing power of wealth decreases because each unit of currency buys fewer goods and services.

If the Price Level Rises, the Purchasing Power of Wealth