If Production Costs Increase, the Price Level Will Rise

question 172

True/False

If production costs increase, the price level will rise.

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Definitions:

Proceeds

Maturity value less bank discount.

Contingent Liability

Liability on the part of one who discounts a note if the maker of the note defaults at maturity date.

Discounted Note

A debt instrument that is sold or issued for less than its face value.

Maturity Value

The sum payable to the holder of a financial instrument at the end of its term, encompassing the principal amount plus any accrued interest.