When the price level increases people:
A) feel less wealthy.
B) feel more wealthy.
C) have the same real value of assets, regardless of the change in the price level.
D) experience a bubble forming in the economy overall.

Question

Quizplus · Accepted Answer

When the price level increases, the purchasing power of money decreases, and people can buy fewer goods and services with the same amount of money. As a result, people feel less wealthy because they cannot afford to buy as much as they could before.

When the Price Level Increases People