When the General Price Level Rises

question 57

Multiple Choice

When the general price level rises:

• A) investment falls as a result of the consumption link effect.
• B) consumption increases as a result of the multiplier effect.
• C) investment rises as a result of the wealth effect.
• D) consumption falls as a result of the wealth effect.

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Definitions:

Amide

An organic compound characterized by a carbonyl group (C=O) attached to a nitrogen atom.

Primary Amines

Organic compounds characterized by the presence of a \(NH_2\) group attached to a primary carbon atom, one that is only bonded to one other carbon.

Diazonium Salt

A class of organic compounds containing a nitrogen double bonded to a nitrogen atom which is also bonded to a benzene ring, significant in synthetic organic chemistry.

Nitrile

Organic compounds containing the cyano group (-C≡N), noted for their use in the production of rubber, resins, and pharmaceuticals.