As the Price Level Decreases,the Value of Money

question 238

Multiple Choice

As the price level decreases,the value of money

• A)increases,so people must hold less money to purchase goods and services.
• B)increases,so people must hold more money to purchase goods and services.
• C)decreases,so people must hold more money to purchase goods and services.
• D)decreases,so people must hold less money to purchase goods and services.

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Definitions:

Favorite Aunt

A term often used to describe an aunt with whom one shares a close and favorable relationship, exceeding typical familial bonds.

Absolute Threshold

The minimum intensity of stimulation required to detect a particular stimulus 50% of the time.

Stimulus

A stimulus is something that causes a response or reaction in an organism or in any of its parts.

Just Noticeable Difference

The smallest difference in stimulation that a person can detect 50% of the time, also known as the threshold of sensation.