All else equal,which of the following happens as the price level falls?
A)The money supply falls.
B)Interest rates rise.
C)Dollars become more valuable.
D)Dollars become less valuable.

Question

Quizplus · Accepted Answer

As the price level falls, the purchasing power of currency (in this case dollars) increases, meaning that each dollar can purchase more goods and services. This results in dollars becoming more valuable.

All Else Equal,which of the Following Happens as the Price