If the price level increases,
A)the buying power of your checking account falls.
B)the buying power of your checking accounts rises with it.
C)there is no effect on buying power.
D)the economy tends to grow faster.

Question

Quizplus · Accepted Answer

When the price level increases, the value of goods and services also increases, which means it will take more money to buy the same amount of goods and services. This means the buying power of your checking account falls.

If the Price Level Increases