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
Economics
You might also like to view...
Which of the following will NOT cause a shift in the demand curve for reserves?
A) Business cycles B) A change in the federal funds rate C) Changes in deposit base D) Liquidity shocks
Economics
Which of the following explains why a $100 billion reduction in consumption spending might decrease equilibrium real GDP by more than $100 billion?
A. Say's law. B. The quantity theory of money. C. Flexible resource prices. D. The multiplier principle.
Economics