If the purchasing power of the dollar is falling, then it follows that:

Question

Quizplus · Accepted Answer

When the purchasing power of the dollar is falling, it means that the value of money is decreasing, and it can buy fewer goods and services. In such a situation, the prices of goods and services generally rise, leading to an increase in the price index. Therefore, option B is the correct choice. The other options do not necessarily follow from the given statement.

If the Purchasing Power of the Dollar Is Falling, Then