Other Things the Same,which of the Following Happens If the Price

question 20

Multiple Choice

Other things the same,which of the following happens if the price level rises?

• A)Money demand shifts rightward.
• B)Initially there is an excess demand for money in the money market.
• C)The interest rate rises.
• D)All of the above are correct.

---

Definitions:

Proportional Tax

A tax system where the rate of taxation is fixed and does not change based on the income level, meaning everyone pays the same percentage of their income in taxes.

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of products like gasoline, tobacco, and alcohol.

Direct Tax

A type of tax levied directly on personal or corporate income.

GDP

The entire financial value of all conclusive goods and services brought forth within a nation over an established duration is encapsulated by Gross Domestic Product.