The value of a dollar
A) is its purchasing power.
B) remains constant over time.
C) is its face value.
D) is set by the government.

Question

Quizplus · Accepted Answer

The value of a dollar is its purchasing power, meaning what it can buy. This can vary based on factors such as inflation and supply and demand. Therefore, option A is the best answer. Option B is incorrect because the value of a dollar can change over time due to inflation or deflation. Option C is incorrect because while the face value of a dollar bill is $1, its actual value in terms of purchasing power may be more or less than that. Option D is incorrect because while the government does have some control over the value of a dollar through monetary policy, the ultimate value is determined by various economic factors.

The Value of a Dollar