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

question 60

Multiple Choice

Other things the same,an increase in the price level induces people to hold

• A)less money,so they lend less,and the interest rate rises.
• B)less money,so they lend more,and the interest rate falls.
• C)more money,so they lend more,and the interest rate falls.
• D)more money,so they lend less,and the interest rate rises.

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Definitions:

Accession

The acquisition of property by its incorporation or union with other property.

Personal Property

Property that is movable, as opposed to real estate. It includes items like furniture, vehicles, and electronic devices.

Intermixing

The act of mixing or blending together different elements or substances.

Constitution

The fundamental principles or established precedents according to which a state or other organization is governed.