If there is a general increase in the price level, the value of money in terms of any commodity must have ___________. Which of the following options suits best in the above blank?

Increased Decreased Remained constant Either decreased or increased

Decreased

If prices of all commodities increase in terms of money i.e., there is a general increase in the price level, the value of money in terms of any commodity must have decreased – in the sense that a unit of money can now purchase less of any commodity.