If You Have $1,000 in Wealth and the Price Level

question 283

Multiple Choice

If you have $1,000 in wealth and the price level increases by 20 percent, then

• A) the $1,000 will buy fewer goods and services.
• B) the $1,000 dollars will buy 20 percent more goods and services.
• C) the real value of the $1,000 increases.
• D) you will be able to buy fewer goods, but the real value of those goods will increase.

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Definitions:

Reconstruction

The period following the American Civil War (1865-1877), focusing on the integration of the Southern states into the Union and the legal and social status of the freed African Americans.

Union Draft Law

Legislation during the American Civil War that allowed for the conscription of soldiers into the Union Army, notable for its exemptions which could be bought, leading to discontent.

Substitute

An alternative or replacement for someone or something, often used in contexts ranging from education to food products.