Asked by Andres Soler on May 05, 2024
Verified
As the price level falls, the value of money falls.
Price Level
An index or measurement that reflects the average prices of goods and services in an economy at a given time.
Value of Money
The purchasing power of money, which can be affected by factors like inflation and changes in the interest rate.
- Acquire insight into how the supply and demand of money influence its value.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
False
Explanation :
As the price level falls, the value of money increases because each unit of currency can buy more goods and services than before.
Learning Objectives
- Acquire insight into how the supply and demand of money influence its value.