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28 August, 23:25

If the number of dollars needed to buy a representative basket of goods falls, the price level

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  1. 28 August, 23:33
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    The correct answer is letter "C": decreases, so the value of money rises.

    Explanation:

    A basket of goods is mainly used to evaluate changes in urban consumer habits. Food, housing, healthcare, education, and recreation expenses are included in a basket of goods. It is usually studied with the Consumer Price Index (CPI) and is also a tool useful to find out the levels of inflation within a specific market.

    In the case less number of dollars are needed to purchase a "regular" basket of goods, it implies the average price level has decreased, thus, the money value has increased.
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