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

question 41

Multiple Choice

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

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

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Definitions:

Maturity Value

The total amount that will be paid to an investor at the maturity date of a financial instrument, including principal and interest.

Bank Discount

The difference between the face value of a banknote or security and its selling price, before it reaches its maturity.

Discount Period

The time frame within which a buyer can pay less than the full amount due by taking advantage of a discount offered by the seller.

Discounted Note

A promissory note that is sold or redeemed for less than its face value before its maturity date.