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The price level and the value of money are

Economics
WAEC 2023

The price level and the value of money are

  • A. positively related
  • B. directly related
  • C. not related
  • D. inversely related
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Correct Answer: Option D
Explanation

The price level and the value of money are inversely related. The price level is the average price of goods and services in an economy. The value of money is the amount of goods and services that can be purchased with a unit of money.

When the price level increases, the value of money decreases. This is because the same amount of money can buy fewer goods and services. Conversely, when the price level decreases, the value of money increases. This is because the same amount of money can buy more goods and services.


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WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC offline past questions - with all answers and explanations in one app - Download for free
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC offline past questions - with all answers and explanations in one app - Download for free