As the price level decreases,the value of money
A)increases,so people must hold less money to purchase goods and services.
B)increases,so people must hold more money to purchase goods and services.
C)decreases,so people must hold more money to purchase goods and services.
D)decreases,so people must hold less money to purchase goods and services.

Question

Quizplus · Accepted Answer

As the price level decreases, the value of money increases because each unit of currency can now purchase more goods and services. Therefore, people need to hold less money to make the same purchases.

As the Price Level Decreases,the Value of Money