If the Aggregate Price Level Doubles

question 265

Multiple Choice

If the aggregate price level doubles:

• A) the money supply will also double.
• B) neither money demand nor the money supply will rise.
• C) both money demand and the money supply will rise proportionally.
• D) money demand at any given interest rate will also double.

---

Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company's financial health and value.

Excess Amount

The surplus or amount by which a sum exceeds what is necessary or required.

Outstanding Common Shares

The shares of a corporation that are issued and owned by shareholders, representing ownership in the company.

Net Assets

The difference between a company's total assets and its total liabilities, representing the equity value that shareholders would theoretically receive if all assets were liquidated and all debts paid.