Author Question: If the price level in an economy increases, other things constant, consumption spending is likely to ... (Read 98 times)

rachel9 · **on:** Jun 30, 2018

If the price level in an economy increases, other things constant, consumption spending is likely to _____.
a. increase because real income increases
b. decrease because real income increases
c. increase because the real value of wealth increases
d. decrease because the real value of wealth decreases
e. increase because nominal income increases

Question 2

In the United States, paper money is redeemable for gold.
a. True
b. False
Indicate whether the statement is true or false