Other Things Being Equal,the Purchasing Power of Money Is

question 88

Multiple Choice

Other things being equal,the purchasing power of money is

• A)inversely related to the level of aggregate demand.
• B)inversely related to the price level.
• C)directly related to the price level.
• D)directly related with the cost of living.
• E)directly related to the level of aggregate demand.

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Definitions:

Equity-Financed

A method of raising capital by selling company shares to investors as opposed to incurring debt.

Incremental Value

Refers to the additional value generated by undertaking a certain action, decision, or investment, compared to doing nothing.

Shares Outstanding

The total number of shares of a company's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company's officers and insiders.

Market Price

The current selling or buying price for an asset or service.