As the price level rises,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 rises, the value of money decreases because it can buy fewer goods and services. Therefore, people must hold more money to purchase the same amount of goods and services, which is why holding more money is an inflationary measure.

As the Price Level Rises,the Value of Money