The value of a dollar variesquestion 1 options: a) inversely with the price of gold. b) directly with the price level. c) inversely with the price level. d) directly with the purchasing power of other major currencies.

Option (D) is correct.

Explanation:

There is a change in the value of the dollar with the change in the value or purchasing power of the other nation's currency. This means that there is a direct or positive relationship between the value of the dollar and the value of the other nation's currency. It is known as the exchange rate. Exchange rate is the rate at which goods are being traded between the nations.

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