Assume you have $1,000 in a savings account at the beginning of the year and the price level is equal to 100. If the price level is equal to 115 at the end of the year, the real value of your savings is closest to
A. $1,115.
B. $885.
C. $1,150.
D. $870.
Answer: D
You might also like to view...
Education is a good example of a positive externality because the benefits of an education accrue not only to the individual, but also to society as a whole
a. True b. False Indicate whether the statement is true or false
A tax system under which an individual pays a higher fraction of his income in taxes at higher levels of income is formally described as
A. digressive. B. progressive. C. proportional. D. regressive.
List four factors that could shift the consumption schedule.
What will be an ideal response?
In the United States since 1970, the quantity of M1 money people hold as a percentage of GDP has
A) decreased. B) remained constant. C) decreased at first and then increased. D) increased at first and the decreased. E) increased.