A decrease in the price level will have a direct effect on spending because
A)people like to spend less when prices are lower.
B)the real value of the money people have varies directly with the price level,and so does their spending.
C)the real value of the money people have increases and they can buy more with it.
D)the more money they have the more it is worth and the more goods and services they can buy.

Question

Quizplus · Accepted Answer

A decrease in the price level increases the real value of money, allowing people to buy more goods and services with the same amount of money.

A Decrease in the Price Level Will Have a Direct