Question

A fall in the price level: Multiple Choice reduces the value of money in peoples' pockets, so people buy less goods. reduces the value of money in peoples' pockets, so people buy more goods. increases the value of money in peoples' pockets, so people buy more goods. increases the value of money in peoples' pockets, so people buy less goods.

Answer 1

increases the value of money in peoples' pockets, so people buy more goods.

Step-by-step explanation:

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

If price level falls, the value of money rises as a consumer would be able to buy the same basket of goods at a reduced price. This would induce a consumer to buy more goods.

A rise in price levels reduces the value of money in peoples' pockets, so people buy less goods.

I hope my answer helps you.