According to the Interest Rate Effect, as the Price Level

question 30

Multiple Choice

According to the interest rate effect, as the price level increases, households and firms' holdings of money ____, interest rates ____, investments ____, and the quantity RGDP demanded ____.

• A)​increases, decrease, increase, decreases
• B)​increases, increase, increase, decreases
• C)​decreases, decrease, decrease, increases
• D)​increases, increase, decrease, decreases

---

Definitions:

Obsessive-compulsive Personality Disorder

A disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and mental and interpersonal control, at the expense of flexibility, openness, and efficiency.

Avoidant Personality Disorder

A mental health condition characterized by a long-standing pattern of extreme shyness, feelings of inadequacy, and sensitivity to rejection.

Cognitive Therapists

Mental health professionals specializing in therapies that identify and change destructive or disturbing thought patterns that have a negative influence on behavior and emotions.

Schizotypal Personality Disorder

A condition of the mind manifesting with intense social distress, chaotic thoughts, mistrustful ideations, a detachment from the surroundings, temporary psychotic episodes, and frequently atypical beliefs.