Which of the following factors may lead to a decline in the real value of money?
A)Increase in the rate of interest
B)Decline in aggregate demand in the economy
C)Decrease in money supply
D)Increase in the average price level
E)Decrease in aggregate output

Question

Quizplus · Accepted Answer

An increase in the average price level will lead to a decline in the real value of money as the same amount of money can buy fewer goods and services.

Which of the Following Factors May Lead to a Decline