Other things the same,as the price level falls,
A)the money supply falls.
B)interest rates rise.
C)a dollar buys more domestic goods.
D)the aggregate-demand curve shifts right.

Question

Quizplus · Accepted Answer

As the price level falls, each dollar can buy more domestic goods, which means that the purchasing power of money increases. This is because prices are lower and therefore goods are relatively cheaper. The increase in purchasing power of money is known as an increase in the real value of money.

Other Things the Same,as the Price Level Falls