The purchasing power of money increases as the
A) demand increases.
B) unemployment decreases.
C) price level falls.
D) production increases.

Question

Quizplus · Accepted Answer

Purchasing power of money refers to the amount of goods and services that can be purchased with a certain amount of money. When the price level falls, the purchasing power of money increases as more goods and services can be purchased with the same amount of money. Therefore, the correct choice is C.

The Purchasing Power of Money Increases as the