The value of money varies
A)Directly with the interest rate
B)Directly with the price level
C)Directly with the volume of employment
D)Inversely with the price level
E)With none of the above

Question

Quizplus · Accepted Answer

The value of money is inversely related to the price level. When the price level increases, the purchasing power of money decreases, and vice versa. This is known as inflation or deflation, which affect the value of money in an economy. The other options are not directly related to the value of money.

The Value of Money Varies