If the price level doubles,it will
A)increase the quantity of money.
B)have no effect on the buying power of money.
C)decrease the buying power of money.
D)increase potential GDP.
E)decrease potential GDP.

Question

Quizplus · Accepted Answer

If the price level doubles, each unit of currency will be able to purchase only half the amount that it was previously able to purchase. This means that the buying power of money will decrease, and ultimately lead to inflation if left unchecked.

If the Price Level Doubles,it Will