A nation with greater income, ceteris paribus, will have: A) lower prices. B) higher prices. C) lower money supply. D) higher prices and higher money supply.

Question

Quizplus · Accepted Answer

Higher income, ceteris paribus, suggests an economy is growing or more robust, which can lead to higher prices due to increased demand. Additionally, a higher money supply might be present to support this economic growth, further contributing to higher prices.

A Nation with Greater Income, ceteris Paribus, Will Have