If you are have $1,000 of money in the bank and the price level rises 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 risen.
Answer:B
If you are have $1,000 of money in the bank and the price level rises 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 risen.