What will happen to the value of the dollar

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Reference no: EM13770714

Recall the formula that states that $V = 1/P, where V is the value of the dollar and P is the price level. If the price level falls from 1 to 0.75, what will happen to the value of the dollar?

a. It will rise by a third (33.3 percent).

b. It will fall by a quarter (-25 percent).

c. It will rise by a quarter (25 percent).

d. It will fall by a third (-33.3 percent).

Reference no: EM13770714

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