In which of the following situations will an individual's purchasing power be unaffected?
A)money income doubles and the prices of all goods and services are cut in half
B)money income remains constant and the prices of all goods and services double
C)money income is cut in half and the prices of all goods and services double
D)money income is cut in half and the prices of all goods and services remains constant
E)money income doubles and the prices of all goods and services double

Question

Quizplus · Accepted Answer

When both money income and prices double, the purchasing power remains unchanged because the ratio of income to prices stays the same.

In Which of the Following Situations Will an Individual's Purchasing