Increases in the price level will
A) raise consumption because some goods and services are more affordable.
B) raise consumption because real wealth increases.
C) lower consumption because real wealth decreases.
D) lower consumption because goods and services are less affordable.
C
You might also like to view...
To be a member of the Internal Monetary Fund a nation must deposit funds based on
A) the need to loan money to developing nations. B) its national income. C) the amount of funds it wants to deposit. D) rules set up by the World Bank.
A product is considered to be rival if
A) your consumption of the product reduces the quantity available for others to consume. B) you can keep those who did not pay for the item from enjoying its benefits. C) you cannot keep those who did not pay for the item from enjoying its benefits. D) it is jointly owned by all members of a community.
Why is it impossible that all industries in a developing country qualify as infant industries?
(a) You cannot have a comparative advantage in everything. (b) You cannot have an absolute advantage in everything. (c) This would violate international law. (d) This would reduce the terms of trade.
Many East Asian currencies during the 1990s were
a. allowed to float freely b. pegged to the Japanese yen c. pegged to the U.S. dollar d. pegged to gold e. none of the above