Suppose There Is an Exogenous Increase in the Domestic Price

question 77

Multiple Choice

Suppose there is an exogenous increase in the domestic price level. Which of the individuals listed below would experience an increase in wealth?

• A)a person with cash under the mattress
• B)a person with a 25- year home mortgage
• C)a person with a government bond that promises to pay the holder $1000, 5 years hence
• D)a person with deposits in a bank savings account
• E)a person with a corporate bond that promises to repay the face value of the bond in the future

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Definitions:

Automatic Thoughts

Unconscious, spontaneous thoughts that can influence emotions and behavior, often occurring as a response to particular situations.

Self-Destructive

Behavior that causes harm or damage to oneself.

Illogical

Lacking sense or clear, sound reasoning.

Alcoholics Anonymous

A voluntary, worldwide fellowship of individuals seeking to overcome alcoholism through mutual support and a 12-step program.