If the price level doubles, the value of money ________.
A) doubles
B) more than doubles, due to scale economies
C) rises but does not double, due to diminishing returns
D) falls by half

Question

Quizplus · Accepted Answer

If the price level doubles, the purchasing power of money falls by half, meaning the value of money also falls by half. Therefore, option D is the correct answer.

If the Price Level Doubles, the Value of Money ________