If the price level falls,the real value of a dollar
A)rises,so people will want to buy more.
B)rises,so people will want to buy less.
C)falls,so people will want to buy more.
D)falls,so people will want to buy less.

Question

Quizplus · Accepted Answer

If the price level falls, the purchasing power of the dollar increases. This means that people can buy more goods and services with the same amount of money, so they will want to buy more. Therefore, the real value of the dollar rises and people's demand for goods and services increases.

If the Price Level Falls,the Real Value of a Dollar