If the average price level in 1991 was 1.20 relative to the base year in 1986, then a dollar in 1991 bought 20 percent more goods and services than a dollar in 1986.

Name: If the average price level in 1991 was 1.20 relative to the base year in 1986, then a dollar in 1991 bought 20 percent more goods and services than a dollar in 1986.
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If the price level in 1991 was 1.20 relative to 1986, it means that prices increased by 20%, so a dollar in 1991 bought fewer goods and services than in 1986, not more.

If the Average Price Level in 1991 Was 1