If nominal income increases by 3 percent and real income increases by 4 percent, the price level must:
A. decrease by 7 percent.
B. decrease by 1 percent.
C. increase by 1 percent.
D. increase by 7 percent.
Answer: B
You might also like to view...
A reduction in a country's money supply causes
A) its currency to depreciate in the foreign exchange market. B) its currency to appreciate in the foreign exchange market. C) does not affect its currency in the foreign market. D) does affect its currency in the foreign market in an ambiguous manor. E) affects other countries currency in the foreign market.
What is the equation of exchange? What are the variables, which are in it, and how do they relate to each other?
A portfolio's performance is its yield to the holder
a. True b. False Indicate whether the statement is true or false
When a state government chooses to build more roads, the resources used are no longer available for public education programs. This dilemma illustrates the concept of
A. unintended consequences. B. scarcity. C. production expenses. D. unemployment issues.