Suppose Each Good Costs $5 Per Unit and Megan Holds

question 113

Multiple Choice

Suppose each good costs $5 per unit and Megan holds $40.What is the real value of the money she holds?

• A)$40.If the price of goods rises,to maintain the real value of her money holdings she needs to hold more dollars.
• B)8 units of goods.If the price of goods rises,to maintain the real value of her money holdings she needs to hold more dollars.
• C)$40.If the price of goods rises,to maintain the real value of her money holdings she needs to hold fewer dollars.
• D)8 units of goods.If the price of goods rises,to maintain the real value of her money holdings she needs to hold fewer dollars.