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:

Total Product

Total product refers to the total quantity of output produced by a firm or economy during a given period.

Average Product

The total output produced per unit of a resource employed.

Marginal Product

The extra production resulting from the use of one additional unit of a specific input while holding other inputs steady.

Total Cost

The sum of all costs associated with the production or provision of a good or service, including fixed and variable costs.