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    Principles of Economics Study Set 8
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    Exam 30: Money Growth and Inflation
  5. Question
    An Increase in the Price Level Causes the Value of Money
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An Increase in the Price Level Causes the Value of Money

Question 74

Question 74

Short Answer

An increase in the price level causes the value of money to _____. Therefore, people will want to hold ____ money, because the cost of their purchases has increased.

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