Author Question: A rise in the price level has a direct effect on spending because A) the real value of the money ... (Read 33 times)

saraeharris · **on:** Jun 30, 2018

A rise in the price level has a direct effect on spending because

A) the real value of the money people have decreases and they can buy less with it.
B) a higher price gives people more money, and so the more goods and services they can buy.
C) the real value of the money people have varies directly with the price level.
D) people like to spend more when prices are higher.

Question 2

By definition, disposable income is equal to

A) consumption minus saving. B) consumption plus saving.
C) consumption plus investment. D) investment plus saving.