All else equal,what happens as the price level falls?
A) The money supply falls.
B) Interest rates rise.
C) Dollars become more valuable.
D) Dollars become less valuable.

Name: All else equal,what happens as the price level falls? A) The money supply falls. B) Interest rates rise. C) Dollars become more valuable. D) Dollars become less valuable.
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Question

Quizplus · Accepted Answer

As the price level falls, dollars become more valuable. This is because the purchasing power of each dollar increases when prices decrease.

All Else Equal,what Happens as the Price Level Falls