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

Question

Quizplus · Accepted Answer

The purchasing power of money is the amount of goods and services that can be purchased with a given amount of money. As the price level increases, the purchasing power of money decreases because it takes more money to purchase the same amount of goods and services. Therefore, choice B is the best answer.

The Purchasing Power of Money Decreases as the