Ben is a consumer and decides not to purchase luxury items because they are too expensive.

A. When aggregate income is high, people hold cash to buy goods that are plentiful and cheap.

B. When price levels rise, people hold onto cash.

B. When price levels rise, people hold onto cash.

This makes sense because choice A. doesn't make sense.

Aggregate means "comprised of," which would imply that people pool all of their income to buy cheap items in large quantities, which is unlikely. If you combined all your money, say between three people, then you COULD buy the luxury items with all of it.

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Ben is a consumer and decides not to purchase luxury items because they are too expensive. A. When aggregate income is high, people hold cash to buy goods that are plentiful and cheap. B. When price levels rise, people hold onto cash.

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Ben is a consumer and decides not to purchase luxury items because they are too expensive.

A. When aggregate income is high, people hold cash to buy goods that are plentiful and cheap.

B. When price levels rise, people hold onto cash.