When the price level goes up, the purchasing power of the dollar
A)also increases.
B)falls.
C)remains constant.
D)varies directly with the value of the euro.

Name: When the price level goes up, the purchasing power of the dollar A)also increases. B)falls. C)remains constant. D)varies directly with the value of the euro.
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Question

Quizplus · Accepted Answer

When the price level goes up, the purchasing power of the dollar falls. This means that each dollar can buy fewer goods and services.

When the Price Level Goes Up, the Purchasing Power of the Dollar