Question

If P represents the price of goods and services measured in money, then 1/P is the value of money measured in terms of goods and services True False

Answer 1

The answer is True

Step-by-step explanation:

There is an inverse relationship between the price level and value of money (also known as purchasing power). An increase in the price level is the same as an decrease in the value of money.

As the price level decreases money is able to buy more goods and services and as the price level increases, money is able to buy less goods and services. inflation decrease the value of money or consumers' purchasing power.