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Question : The relationship between the value of money and the price level in an economy is 

Option 1: Direct 

Option 2: Inverse

Option 3: Proportional 

Option 4: Stable 


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 27th Jan, 2024

Correct Answer: Inverse


Solution : The Correct Answer is Inverse

Price level is the average of the prices of all the goods and services in an economy, and value of money is what one unit of money can buy. As a result, the value of money and the level of prices in an economy are inversely related. The price level changes proportionally in response to changes in the money supply and vice versa.

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