Which of the Following Statements Is True If Your Money

question 337

Multiple Choice

Which of the following statements is true if your money income stays the same but the price of one good that you are buying goes up?

• A) Your effective purchasing power falls.
• B) Your nominal income has been decreased.
• C) You will have to reduce the quantities you purchase of all goods.
• D) Your real income has increased.

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Definitions:

Luck

The concept of experiencing positive, beneficial outcomes by chance rather than through one's own actions.

Fate

The development of events beyond a person's control, regarded as predetermined by a supernatural power.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.

Crowded

Characterized by a high density of people or objects in a particular area, often leading to a sense of limited space.