If the Price Level Rises, the Purchasing Power of Wealth

question 465

Multiple Choice

If the price level rises, the purchasing power of wealth

• A) increases.
• B) does not change.
• C) decreases.
• D) increases at first but in the long run decreases.

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Definitions:

Circle

A round plane figure, every point of which is equidistant from a fixed center point, defined by the equation (x-h)^2 + (y-k)^2 = r^2 in a coordinate plane.

Radius

The distance from the center of a circle to any point on its circumference.

Center

In geometry, the central point of a circle or sphere, equidistant from all points on the perimeter or surface.

Radius

A line segment from the center of a circle to any point on its circumference, or the length of this segment.