Ask Question
2 May, 23:41

If the number of dollars needed to buy a representative basket of goods falls, the price level

+3
Answers (1)
  1. 3 May, 01:07
    0
    The correct answer is letter "C": decreases, so the value of money rises.

    Explanation:

    A basket of goods is mainly used to evaluate changes in urban consumer habits. Food, housing, healthcare, education, and recreation expenses are included in a basket of goods. It is usually studied with the Consumer Price Index (CPI) and is also a tool useful to find out the levels of inflation within a specific market.

    In the case less number of dollars are needed to purchase a "regular" basket of goods, it implies the average price level has decreased, thus, the money value has increased.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If the number of dollars needed to buy a representative basket of goods falls, the price level ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers