Other things being equal,a rise in the domestic price level
A)causes a decrease in real saving.
B)lowers the real value of all assets denominated in money units.
C)makes domestic goods more attractive to foreigners.
D)makes foreign goods less attractive to domestic residents.
E)raises the real burden of repaying a fixed money value debt.

Question

Quizplus · Accepted Answer

A rise in the domestic price level lowers the real value of all assets denominated in money units because inflation erodes the purchasing power of money.

Other Things Being Equal,a Rise in the Domestic Price Level