Suppose ice cream cones costs $3.Molly holds $60.What is the real value of the money she holds?
A)$60.If the price of ice cream cones rises,to maintain the real value of her money holdings she need to hold more dollars.
B)$60.If the price of ice cream cones rises,to maintain the real value of her money holdings she need to hold fewer dollars.
C)20 ice cream cones.If the price of ice cream cones rises,to maintain the real value of her money holdings she needs to hold more dollars.
D)20 ice cream cones.If the price of ice cream cones rises,to maintain the real value of her money holdings she needs to hold fewer dollars.

Question

Quizplus · Accepted Answer

If Molly can buy 20 ice cream cones with her $60, then each ice cream cone costs $3. If the price of ice cream cones rises, to maintain the real value of her money holdings, she needs to hold more dollars because she would need more money to buy the same number of ice cream cones. Therefore, the correct answer is C - 20 ice cream cones.

Suppose Ice Cream Cones Costs $3