Which of the Following Is True of a Price Level

question 51

Multiple Choice

Which of the following is true of a price level increase in an economy?

• A)When the price level increases,the purchasing power of money increases.
• B)When the price level increases,the purchasing power of money decreases.
• C)When the price level increases,the purchasing power of money remains unchanged.
• D)When the price level increases,the purchasing power of money either increases or decreases,depending upon the size of the national debt.
• E)When the price level increases,the purchasing power of money either increases or decreases,depending upon the level of government expenditures.

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Definitions:

Net Receivables

The amount of money expected to be received from accounts receivable after deducting allowances for bad debts or discounts.

Formal Instrument of Credit

A written document that acknowledges debt and specifies the terms under which it will be repaid.

Note Receivable

Note receivable is a financial asset representing a written promise to receive a specific amount of money, plus interest, by a certain date.

Notes Receivable

A claim or right to receive a determinable sum of money from another party as evidenced by a promissory note.