Answer
The real money of value decreases.
Work Step by Step
An increase in price level means that with a given amount of money fewer goods can be bought. Meaning that the real value of money has decreased.
Principles of Economics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516587X
ISBN 13:
978-1-28516-587-5
Chapter 30 - Part X - Money Growth and Inflation - Problems and Applications - Page 656: 2
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