If you have $1,000 in wealth and the price level increases 20 percent, then
A. the $1,000 will buy fewer goods and services.
B. the $1,000 dollars will buy 20 percent more goods and services.
C. the real value of the $1,000 increases.
D. you will be able to buy fewer goods, but the real value of those goods will increase.
Answer:A
If you have $1,000 in wealth and the price level increases 20 percent, then
A. the $1,000 will buy fewer goods and services. B. the $1,000 dollars will buy 20 percent more goods and services. C. the real value of the $1,000 increases. D. you will be able to buy fewer goods, but the real value of those goods will increase.