passwella.
Menu

WAEC Economics 2019 Question 34

Question 34

Money and Inflation

Which of the following is true of the value of money? It

  1. A.is positively related to the price level.
  2. B.depends on the value people attach to it.
  3. C.is determined by the government.
  4. D.is inversely related to the price level.
Show the answer and explanation

Answer: D (is inversely related to the price level.)

Explanation

When prices rise, money buys less, so the value of money moves opposite to the price level.