Which of the Following Will Result as Part of the Interest

question 62

Multiple Choice

Which of the following will result as part of the interest rate effect when the price level rises?

• A)​Households and firms increase their holdings of money.
• B)​Interest rates will increase.
• C)​A lower quantity of real GDP will be demanded.
• D)​All of the above will result as part of the interest rate effect when the price level rises.

---

Definitions:

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Increase

An upward movement in quantity, value, or some measure of performance.

Revenues

Revenues refer to the income that a business generates from its normal business operations, typically from the sale of goods and services to customers.

Owner's Capital

The amount of equity a business owner has invested in the company, reflecting the difference between the company's assets and liabilities.