Increases in the Price Level

question 51

Multiple Choice

Increases in the price level

• A)increase the opportunity cost of holding money.
• B)decrease the opportunity cost of holding money.
• C)increase the quantity of money needed for buying and selling.
• D)decrease the quantity of money needed for buying and selling.

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Definitions:

Cognitive Processes

Mental activities such as thinking, understanding, learning, and remembering.

Unattended Information

Information that is present in the environment but is not the focus of one's attention and hence is processed minimally or not at all.

Sensory Memory

The shortest-term element of memory, which allows retention of impressions of sensory information after the original stimuli have ended.

Primacy and Recency Effects

Psychological terms describing the tendency to remember information that appears at the beginning (primacy) and end (recency) of a list better than information in the middle.