Though the Prices of Things She Buys Have Gone Up

question 7

Multiple Choice

Though the prices of things she buys have gone up, Jin's income has remained stable over the past few years . Nevertheless, Jin feels better off because the environment is cleaner, the crime rate has dropped, she has more relaxation time, and the quality of medical care has improved. If Jin's experience is typical, we can assume that the standard of living has

• A) increased, but the quality of life has decreased.
• B) increased, and so has the quality of life.
• C) declined, but the quality of life has increased.
• D) declined, and so has the quality of life.

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Definitions:

U.S. Investor

An individual or entity based in the United States that allocates capital in various financial assets to earn a return.

Fixed Exchange Rate

A country's currency value set and maintained as equal to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold.

Covariance

A measure of the degree to which two variables move in relation to each other.

Japanese Stock Market

The financial market in Japan where publically traded company stocks are bought and sold, notably includes the Tokyo Stock Exchange.