If the Price Level Doubles, the

question 159

Multiple Choice

If the price level doubles, the

• A) nominal demand for money decreases.
• B) real demand for money increases.
• C) real demand for money decreases.
• D) nominal demand for money increases.

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Definitions:

Accompanying Figure

A visual representation such as a chart, graph, or image that is provided to support or illustrate textual information.

Bridge

A structure built to span a physical obstacle, such as a body of water, valley, or road, without blocking the way underneath.

Base Level

The lowest point to which erosion by running water can occur, often the level at which a river meets the sea or lake.

Climate

The long-term pattern of weather in a particular area, typically averaged over a period of 30 years.