Which of the following is an example of the price effect during a period of inflation?
A) Your income increases,but not as rapidly as the price level does.
B) You buy a lot of gasoline,and the price of gasoline rises more rapidly than the price level does.
C) You own a house,and its value rises more rapidly than the price level does.
D) You own municipal bonds that pay a low interest rate while the price level is rising.

Question

Quizplus · Accepted Answer

The price effect refers to the impact of inflation on the purchasing power of money, where specific prices rise more rapidly than the general price level, affecting consumers who buy those goods.

Which of the Following Is an Example of the Price