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:

Deferred Expenses

Costs that are incurred but not expensed immediately and are carried on the balance sheet as an asset until recognized.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Accrued Taxes Payable

Liabilities for taxes that have been incurred but not yet paid.

Current Liability

A company's obligations or debts that are due to be paid to creditors within one year.