As the Price Level Rises

question 56

Multiple Choice

As the price level rises

• A)people will want to buy more bonds,so the interest rate rises.
• B)people will want to buy fewer bonds,so the interest rate falls.
• C)people will want to buy more bonds,so the interest rate falls.
• D)people will want to buy fewer bonds,so the interest rate rises.

---

Definitions:

Output

The cumulative quantity of products or services generated by a corporation or nation.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output.

Diminishing Returns

A principle in economics where each additional unit of input results in a progressively smaller increase in output.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm or industry's output expands.