If You Are Have $1,000 of Money in the Bank

question 114

Multiple Choice

If you are have $1,000 of money in the bank and the price level rises 5 percent, your

• A) money is worth less in terms of what it can purchase.
• B) purchasing power has risen.
• C) money is worth more in terms of what it can purchase.
• D) money is worth the same in terms of what it can purchase.

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Definitions:

Free Trade

The unrestricted purchase and sale of goods and services between countries without the imposition of constraints such as tariffs, duties, and quotas.

Living Standards

The magnitude of economic riches, comfort levels, material acquisitions, and basic livable needs assigned to a particular social strata or region.

International Trade

The exchange of goods and services across national borders, influenced by comparative advantages, tariffs, quotas, and agreements.

Seller

An individual or entity that offers a product or service for sale.