Ask Question
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

+2
Answers (1)
  1. 27 June, 14:27
    0
    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.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “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 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers