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27 June, 14:18

If some of a person's wealth is in cash, it follows that Select one: a. this person's monetary wealth will change as the price level changes. b. this person's monetary wealth will not change as the price level changes. c. this person is wealthier than a person who holds all his wealth in nonmonetary form. d. a and c e. b and c

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  1. 27 June, 14:27
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    The answer is A.

    Explanation:

    If a person's wealth is in cash, price level changes in the economy will definitely affect the his monetary wealth.

    Price level changes arise as a result of inflation. Increase in general price level in the economy will reduce the purchasing power of the cash. For example, a good that used to sell for $2, it now goes for $5.

    And if there is decrease in general price level, the purchasing power of the cash will increase.
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Home » Business » If some of a person's wealth is in cash, it follows that Select one: a. this person's monetary wealth will change as the price level changes. b. this person's monetary wealth will not change as the price level changes. c.
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