Other Things Being Equal, a Rise in the Price Level

question 97

Multiple Choice

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

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

---

Definitions:

Trough

The lowest point in an economic cycle, representing a period of reduced economic activity before a recovery begins.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period of time, typically involving phases of expansion and contraction.

Unemployment Insurance

A government-provided financial assistance program for individuals who have lost their jobs, offering temporary income support while they seek new employment.

Unemployed

Individuals who are without a job but are actively looking for work and available to start work.