Other Things Being Equal,a Rise in the Price Level Will

question 63

Multiple Choice

Other things being equal,a rise in the price level will imply ________ in wealth for the bondholder and ________ in the wealth of the issuer of the bond.

• A)a decline; an increase
• B)a decline; a decline
• C)a decline; no change
• D)an increase; a decline
• E)an increase; an increase

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Definitions:

Tender

An offer to perform work, supply services, or sell goods at a specified price.

Deed

A legal document that represents the ownership of a property and can transfer that ownership from one party to another.

Statute Of Frauds

A legal concept that requires certain kinds of contracts to be written and signed in order to be enforceable.

Parol Evidence Rule

A rule that prevents a party from introducing evidence that would add to or contradict terms of a contract.