As the Price Level Rises

question 84

Multiple Choice

As the price level rises

• A)people will want to hold more money,so the interest rate rises.
• B)people will want to hold more money,so the interest rate falls.
• C)people will want to hold less money,so the interest rate falls.
• D)people will want to hold less money,so the interest rate rises.

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Definitions:

Frequency Source

A device or component that generates a steady and specific frequency of electrical signal.

Capacitive Reactance

The opposition that a capacitor presents to the change in voltage, measured in ohms.

Frequency Source

An electronic component or circuit that generates a signal of a specific frequency, used in various types of electronic equipment.

Capacitive Reactance

The resistance a capacitor offers to AC current, dependent on the frequency of the current and the capacitance value.