Other things the same,as the price level falls,the real value of a dollar
A)rises,and interest rates rise.
B)rises,and interest rates fall.
C)falls,and interest rates rise.
D)falls,and interest rates fall.

Question

Quizplus · Accepted Answer

As the price level falls, the purchasing power of money increases, meaning the real value of a dollar rises. This typically leads to lower interest rates as the demand for money decreases.

Other Things the Same,as the Price Level Falls,the Real Value