If You Have $1,000 of Money in the Bank and the Price

question 363

Multiple Choice

If you have $1,000 of money in the bank and the price level rises by 5 percent, your

• A) money is worth more in terms of what it can purchase.
• B) money is worth less in terms of what it can purchase.
• C) money is worth the same in terms of what it can purchase.
• D) purchasing power has increased.