If You Have $5,000 in Wealth and the Price Level

question 278

Multiple Choice

If you have $5,000 in wealth and the price level decreases 20 percent,then

• A) the $5,000 will buy fewer goods and services.
• B) the $5,000 will buy more goods and services.
• C) the real value of the $5,000 decreases.
• D) the real value of the $5,000 remains constant.

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Definitions:

Physiological Needs

The basic physical requirements for human survival, such as air, water, food, shelter, and sleep, which must be met to pursue higher-level needs.

Motivators

Factors that significantly contribute to enhancing employee satisfaction and motivation, leading to improved performance.

Controlled Motivation

Controlled motivation describes a type of motivation that is driven by external pressures or obligations rather than internal desires or interests.

Rewards

Benefits or compensation given as recognition for one's effort, achievement, or behavior.