As a Person's Wealth Increases We Would Expect the Demand

question 17

Multiple Choice

As a person's wealth increases we would expect the demand for money to:

• A) decrease.
• B) increase dollar for dollar with wealth.
• C) increase but at a rate less than dollar for dollar.
• D) not change; money demand does not vary with wealth, only with income.

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Definitions:

Domestic Employment

Jobs or positions of employment within a country's own borders, as opposed to international or overseas employment.

Imported Good

A product or commodity brought into one country from another for sale.

Diversification-for-Stability

A strategy aiming to reduce risk by allocating investments among various financial instruments, industries, or other categories.

Self-sufficient

The ability of an entity or individual to meet all of its needs without external assistance.