Which of the following will not occur if the level of prices rises?
A) The purchasing power of assets increases.
B) The real value of wealth falls.
C) Aggregate expenditures tend to fall.
D) The real value of assets falls.
E) The purchasing power of money falls.

Question

Quizplus · Accepted Answer

The purchasing power of assets will decrease if the level of prices rises. The purchasing power of assets is the amount of goods and services that can be purchased with a given amount of assets, and this decreases as prices increase because more assets are needed to purchase the same amount of goods and services.

Which of the Following Will Not Occur If the Level