Suppose ice cream cones costs $3 . Molly holds $60 . What is the real value of the money she holds?
a. $60 . If the price of ice cream cones rises, to maintain the real value of her money holdings she need to hold more dollars.
b. $60 . If the price of ice cream cones rises, to maintain the real value of her money holdings she need to hold fewer dollars.
c. 20 ice cream cones. If the price of ice cream cones rises, to maintain the real value of her money holdings she needs to hold more dollars.
d. 20 ice cream cones. If the price of ice cream cones rises, to maintain the real value of her money holdings she needs to hold fewer dollars.
c
You might also like to view...
According to ________, people are often risk averse when it comes to gains and risk preferring when it comes to losses
A) prospect theory B) the reflection effect C) the certainty effect D) the framing effect
Which of the following is not an income transfer?
A.) Unemployment benefits B.) Social Security payments C.) Food stamps D.) Welfare
What is the GNP using the table shown? In billions of dollarsConsumption3,600Investment800Transfer payments750Government Purchases1,000Exports650Imports450Net foreign factor income?30
A. 6,220 B. 6,250 C. 5,570 D. 5,630
In a competitive market, a pollution tax increases the equilibrium price of the polluting good, decreases the equilibrium quantity, and decreases the volume of waste.
Answer the following statement true (T) or false (F)