Consider the effects of an exogenous increase in the domestic price level. For each of the assets listed, explain how the change in the price level would affect the wealth of the asset holder. Then explain the effect on aggregate (private sector) wealth. The footnote on page 535 will help to answer parts (d) and (e) of this question.

a. Cash holdings

b. Deposits in a bank account

c. A household mortgage

d. A corporate bond that promises to pay the bondholder \(\$ 100 00\) on January 1 , 201 5

e. A government bond that promises to pay the holder \$10 000 on January 1 , 201 5