Attempts Keep the Highest / 3 1. The level of prices and the value of money Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of seltzer, one bag of pretzels, and one shuttle ride. In year one, the basket costs $15.00. In year two, the price of the same basket is $14.00. From year one to year two, there is at an annual rate of In year one, $120.00 will buy baskets, and in year two, $120.00 will buy baskets. This example illustrates that, as the price level falls, the value of money