Final answer:
A rise in the price level results in a decrease in the purchasing power of money, meaning that each unit of currency buys fewer goods and services(option b).
Step-by-step explanation:
The student's question is about how a change in the price level affects the value of money. Specifically, the query asks what happens to the value of money when the price level rises. The correct answer to this question is B) Decrease the purchasing power of money.
When there is an increase in the price level, or inflation, the amount of goods and services that can be purchased with a given amount of money decreases. Essentially, each unit of currency buys less than it did prior to the price rise because the general level of prices for goods and services has increased. This reduction in the ability to buy goods and services is referred to as a decrease in the purchasing power of money.