An Individual Holds $10,000 in a Non-Interest-Earning Checking Account, and the Overall

question 209

Multiple Choice

An individual holds $10,000 in a non-interest-earning checking account, and the overall price level rises significantly. Other things being constant, we would expect

• A) the individual's real wealth to decrease and consumption to decline.
• B) the individual's stock of real wealth to decrease but real national income to increase.
• C) no change in the individual's real wealth but a decline in real national product.
• D) the individual's wealth to increase.

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Definitions:

Discriminate

To discriminate means to unjustly treat people differently, especially on the grounds of race, age, sex, or disability.

Substantially Equal Work

Work that is essentially the same in terms of skill, effort, and responsibility, and performed under similar working conditions, requiring equal pay.

Religion

A system of beliefs, values, rituals, and worship associated with the veneration of a higher power, supernatural forces, or deities.

Federal Unemployment

Government-provided benefits given to individuals who have lost their jobs, not due to their own fault, to help them financially during their job search.