Q.

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

A. Direct
B. Inverse
C. Proportional
D. Stable
Answer» B. Inverse
Explanation: The basic causal relationship between the price level and the value of money is that as the price level goes up, the value of money goes down. The "value of money" refers to what a unit of money can buy whereas the "price level" refers to the average of all of the prices of goods and services in a given economy.
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