A Rising Aggregate Price Level _____ an Economy's Interest Rates

question 228

Multiple Choice

A rising aggregate price level _____ an economy's interest rates and therefore _____ output demanded.

• A) increases; increases
• B) increases; reduces
• C) reduces; increases
• D) reduces; reduces

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Definitions:

U.S. Tax Laws

The body of law governing the administration of taxes on individuals, corporations, and other entities in the United States.

Deductibility

The ability of an expense to be subtracted from gross income to determine the taxable income, thus reducing the amount of tax owed.

Contributions

Payments or donations made to an organization, which can be in the form of money, goods, or services.

Prior Service Cost

The expense recognized by a pension plan for benefits earned by employees in periods prior to the implementation of the pension plan.