When a Higher Price Level Generates an Increase in the Interest

question 129

Multiple Choice

When a higher price level generates an increase in the interest rate that induces consumers to borrow less and buy less, this chain of events is referred to as

• A) the real-balance effect.
• B) the interest rate effect.
• C) the open economy effect.
• D) the price level effect.

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A decade marked by significant social, political, and cultural change worldwide, including movements for civil rights and against the Vietnam War in the United States.

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