If you have $5,000 in wealth and the price level decreases 20 percent, then
A. the $5,000 will buy fewer goods and services.
B. the $5,000 will buy more goods and services.
C. the real value of the $5,000 decreases.
D. the real value of the $5,000 remains constant.
Answer:B
If you have $5,000 in wealth and the price level decreases 20 percent, then
A. the $5,000 will buy fewer goods and services. B. the $5,000 will buy more goods and services. C. the real value of the $5,000 decreases. D. the real value of the $5,000 remains constant.