An increase in the price level results in a(n) ________ in the quantity of real GDP demanded because ________
A) decrease; a higher price level increases consumption, investment, and net exports.
B) increase; a higher price level increases consumption, investment, and net exports.
C) decrease; a higher price level reduces consumption, investment, and net exports.
D) increase; a higher price level reduces consumption, investment, and net exports.
C
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Use the graph above to answer the following question. Suppose that Jim is in casino in Las Vegas and wins a $60,000 jackpot
The staff tells him that he can keep it or play one more game that will allow him to increase his jackpot earnings by an additional $20,000 . The game involves simply flipping a coin. If it turns up heads he earns the extra $20,000 . However, if it turns up tails he loses $20,000 of his $60,000 jackpot. Given the utility function above what is he likely to do and why?
Which of the following affects demand for money?
A) prices B) nominal income C) interest rate D) all of the above E) none of the above