When the price level falls,the number of dollars needed to buy a representative basket of goods
A)increases,so the value of money rises.
B)increases,so the value of money falls.
C)decreases,so the value of money rises.
D)decreases,so the value of money falls.

Question

Quizplus · Accepted Answer

When the price level falls, the purchasing power of money increases which means fewer dollars would be needed to buy the same basket of goods. Therefore, the value of money rises.

When the Price Level Falls,the Number of Dollars Needed to Buy