Other things the same, an increase in the price level makes the dollars people hold worth
a. more, so they are willing to spend more.
b. more, so they are willing to spend less.
c. less, so they are willing to spend more.
d. less, so they are willing to spend less.
D
You might also like to view...
The table above gives the CPI basket for 2015. Suppose that 2015 is the reference base period
a) What is the cost of the CPI basket in 2015? b) What is the cost of the CPI basket in 2016? c) What is the CPI for 2015? d) What is the CPI for 2016?
If a household's money income changes and prices do not change, what happens to the household's real income and budget line?
What will be an ideal response?
If the present discounted value of a payment is $1,000,000 and there is a 40 percent chance that the payment will not occur, then the expected value is
A. $1,400,000. B. $1,000,000. C. $400,000. D. $600,000.
The official poverty income threshold in the United States is
A. based on the cost of a budget that includes food, clothing, and shelter. B. never adjusted for the effects of inflation. C. the same for all families independent of the number of people in the family. D. calculated as three times the cost of a minimally acceptable diet for a family.