what is the relation between value of money and general price level
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As the price level increases over time, the value of money decreases. In most countries, the price level increases slowly with inflation and changes in supply and demand. In the U.S., the price level rises between 2 and 3 percent per year on average, doubling every 26 years. Thus, the amount of goods that $1 can buy slowly decreases every year and is halved every 26 years.
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As the price level increases over time, the value of money decreases. In most countries, the price level increases slowly with inflation and changes in supply and demand. In the U.S., the price level rises between 2 and 3 percent per year on average, doubling every 26 years. Thus, the amount of goods that $1 can buy slowly decreases every year and is halved every 26 years.
☆☆HOPE IT MAY HELP YOU.☆☆
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