Other Things the Same,an Increase in the Price Level Makes

question 235

Multiple Choice

Other things the same,an increase in the price level makes the dollars people hold worth

• A)more, so they spend more.
• B)more, so they spend less.
• C)less, so they spend more.
• D)less, so they spend less.

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Definitions:

Distort Incentives

When external factors or policies alter the natural motivations that influence individual or business decisions, potentially leading to inefficient outcomes.

Revenue

The income generated from normal business operations and before any expenses are deducted.

Excise Tax

A tax imposed on specific goods, services, or activities, such as gasoline, cigarettes, or gambling, usually intended to discourage their use or to raise revenue.

Luxury Boats

Expensive, high-end boats equipped with superior amenities, designed for comfort, performance, and status.