An increase in the price level causes the value of money to _____. Therefore, people will want to hold ____ money, because the cost of their purchases has increased.

Price Level

Reflects the average of current prices across the entire spectrum of goods and services produced in the economy, serving as a measure of inflation.

Value of Money

The purchasing power of money, which can vary over time due to inflation or changes in the economy.

Hold Money

The act of retaining cash or money in accounts as savings or reserves, rather than investing or spending it.