The Real Purchasing Power of an Individual Will NOT Be

question 105

Multiple Choice

The real purchasing power of an individual will NOT be affected if

• A) money income doubles and the prices of all goods and services are cut in half.
• B) money income is cut in half and prices of all goods and services remain constant.
• C) money income is cut in half and the prices of all goods and services fall by fifty percent.
• D) money income doubles and the prices of all goods and services remain constant.
• E) money income falls and the price of one good falls.