A rise in the overall price level means that:
A)a given number of dollars won't buy as much in terms of real goods and services.
B)dollar-denominated assets have lost their value.
C)the cost of living has gone down.
D)None of these is true.

Question

Quizplus · Accepted Answer

A rise in the overall price level, also known as inflation, means that it costs more to purchase the same basket of goods and services. This means that a given number of dollars won't be able to buy as much in terms of real goods and services, making them less valuable.

A Rise in the Overall Price Level Means That