If the Price Level in an Economy Increases,other Things Constant,consumption

question 37

Multiple Choice

If the price level in an economy increases,other things constant,consumption spending is likely to _____.

• A)increase because real income increases
• B)decrease because real income increases
• C)increase because the real value of wealth increases
• D)decrease because the real value of wealth decreases
• E)increase because nominal income increases

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Definitions:

Pharynx

The muscular tube that extends from the back of the nose to the esophagus, part of the digestive and respiratory systems.

Small Intestine

A long, coiled section of the digestive system where most digestion and absorption of nutrients and minerals from food occurs.

Duodenum

The first section of the small intestine, immediately beyond the stomach, that plays a critical role in digestion.

Jejunum

The middle section of the small intestine between the duodenum and ileum where the absorption of nutrients occurs.