Question

The value of money has a ___________ relationship to the price level ( 1 / price level).

a. denominator
b. numerator
c. reciprocal
d. multiplier

Answer 1

c. reciprocal

Step-by-step explanation:

The value for the money is the amount of goods or service that can be bought or worth in exchange of 1 unit of money or you can say it how much goods or service need to be given up to get 1 unit of money. Therefore, value of money is the inverse or reciprocal for the price level. The value for money determine the purchasing power of the economy, The higher the price level, lower the Purchasing power of money.