If the price level increases,
A) the buying power of your checking accounts rises with it.
B) the economy tends to grow faster.
C) there is no effect on buying power.
D) the buying power of your checking account falls.
D
You might also like to view...
The elasticity of supply measures the sensitivity of
A) supply to changes in costs. B) quantity supplied to quantity demanded. C) quantity supplied to a change in price. D) price to changes in supply.
If currency outstanding equals $200 million, checkable deposits equal $1 billion, reserves equal $150 million, and the required reserve ratio is 0.10, the money multiplier equals
A) 0.86. B) 3.14. C) 3.43. D) 4.
In the last twenty-five years, the Yen and German mark and now the Euro have
a. fluctuated widely against the dollar b. appreciated against the dollar and then depreciated against the dollar c. exchanged without restrictions d. all of the above e. none of the above
Real GDP, as opposed to money (nominal) GDP, has been adjusted for changes in the general level of prices
a. True b. False Indicate whether the statement is true or false