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A Rise in the Price Level Causes the Demand for Money

question 157

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A rise in the price level causes the demand for money to ________ and the interest rate to ________,everything else held constant.


Definitions:

Formal Authority

The power granted to an individual or organization to make decisions and enforce rules based on an established position.

Coercive Power

A form of power that is based on the ability to deliver punishments or sanction undesirable behaviors.

Coercive Power

The ability to compel or force someone to do something through threats or force.

Legitimate Power

Power that is officially sanctioned by an organization or institution, and is accepted by members as rightly exercised.

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