Which of the following correctly describes how an increase in the price level affects consumption spending?
A) An increase in the price level lowers real wealth, which causes consumption to decrease.
B) An increase in the price level raises real wealth, which causes consumption to increase.
C) An increase in the price level increases the amount of money a household needs to buy goods and raises the interest rate, which causes consumption to increase.
D) An increase in the price level decreases the amount of money a household needs to buy goods and raises the interest rate, which causes consumption to increase.
A
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In the Malthusian model of economic growth
A) Per capita consumption affects birth rates and death rates. B) Per capita consumption affects birth rates but not death rates. C) Per capita consumption affects death rates but not birth rates. D) Per capita consumption is always constant.
Which of the following would lead to an increase in the supply of Russian rubles?
a. An increase in the dollar price of the ruble b. An increase in Russian GDP c. An increase in the U.S. price level relative to the Russian price level d. A decrease in the dollar-ruble exchange rate e. Expectation that the price of the ruble will rise.