$$\begin{array} { | c | c | c | }
\hline \text { Year } & \text { Price Level } & \text { Value of Dollar } \
\hline 1 & 1.00 & \$ 1.00 \
\hline 2 & 1.25 & \
\hline 3 & 0.80 & \
\hline 4 & 0.50 & \
\hline
\end{array}$$ Refer to the given table. The value of the dollar in year 4 is

Question

$$\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Price Level } & \text { Value of Dollar } \
\hline 1 & 1.00 & \$ 1.00 \
\hline 2 & 1.25 & \
\hline 3 & 0.80 & \
\hline 4 & 0.50 & \
\hline
\end{array}$$ Refer to the given table. The value of the dollar in year 4 is

Quizplus · Accepted Answer

The value of the dollar is inversely related to the price level. So, in year 4, with a price level of 0.50, the value of the dollar is 1/0.50 = $2.00.

Refer to the Given Table