If the Price Level Doubles

question 20

Multiple Choice

If the price level doubles,

• A) The quantity demanded of money falls by half.
• B) The value of money is cut by half.
• C) Nominal income is unaffected.
• D) None of these answers.
• E) The money supply has halved.

---

Definitions:

Sampling Frame

A list or database from which a statistical sample is drawn for a study or survey.

Confidence Interval

A statistical range, typically derived from sample data, intended to contain the true value of an unknown population parameter with a specified probability.

Random Sample

A sample drawn in such a way that every member of the population has an equal chance of being selected.

Response Rate

The proportion of individuals who respond to a survey, questionnaire, or research study out of the total number asked to participate.