If you have $1,000 of money in the bank and the price level rises by 5 percent, your
A) money is worth more in terms of what it can purchase.
B) money is worth less in terms of what it can purchase.
C) money is worth the same in terms of what it can purchase.
D) purchasing power has increased.
B
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When tastes over current and future consumption are characterized by Cobb-Douglas utility functions, a borrower who has no income now and all income in the future will borrow more when the interest rate falls.
Answer the following statement true (T) or false (F)
If the price in U.S. dollars for one Singapore dollar is 0.625 U.S. dollars, then the price in Singapore dollars for one U.S. dollar is:
a. 1.0 Singapore dollars. b. 0.625 Singapore dollars. c. 1.6 Singapore dollars. d. 0.375 Singapore dollars. e. 2.66 Singapore dollars.
When the Federal Reserve conducts an open-market purchase, the money supply _____ and aggregate demand _____
Fill in the blank(s) with correct word
The table below shows how quantities of gold demanded and supplied will vary with the price in the market for gold. When the market for gold is in equilibrium, which of the following will be true?
a. The price of gold will be $200 per ounce. b. The quantity of gold exchanged per day will be 15,000 ounces. c. Both A and B. d. The price of gold will be $250. e. The price of gold will be $300.