A fall in the level of prices
A)does not affect the value of money.
B)has an uncertain effect on the value of money.
C)increases the value of money.
D)reduces the value of money.

Question

Quizplus · Accepted Answer

A fall in the level of prices means that goods and services are becoming cheaper, which means that each unit of currency (money) can buy more goods and services. This increases the purchasing power of money, and thus increases its value.

A Fall in the Level of Prices