An individual holds $10,000 in a checking account and the price level rises significantly. Hence
A) the individual's real wealth and consumption expenditure decrease.
B) the individual's real wealth decreases but real national wealth increases.
C) there is no change in the individual's real wealth.
D) the individual's real wealth increases.
A
You might also like to view...
The Congressional Budget Office estimates that most of the increase in federal spending on Medicare and Medicaid will be due to
A) increases in immigration. B) the aging population. C) declining income levels. D) increases in the cost of providing health care.
The devaluation of a currency develops once ________
A) an increase in the value of a country's currency develops B) a monetary authority runs out of international reserves C) the level of domestic income falls D) an increase in the domestic price level develops
Which decision cannot be made at the margin?
a. whether to spend the day on Saturday watching movies or going hiking b. whether to spend your two-week vacation at the beach or in town c. whether to order a pepperoni or a cheese pizza d. whether to move from Boston to Chicago
Which of the following is the objective of expansionary monetary policy?
A. an increase in employment B. a decrease in employment C. an increase in the velocity of money D. an increase in prices proportional to the rise in the money supply