What is the relationship between the value of money and the price level in an economy?

Direct

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Inverse

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Proportional

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Stable

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Solution

The correct option is A Inverse
Value of money is what one unit of money can buy and price level is the average of prices of all the goods and services within an economy. So when the price level increases the value of money goes down and vis a versa. Hence the relationship between price level in an economy and value of money is inverse.

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