If the price level were to rise,people would find that to purchase the same goods and services as before,they would need

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As the price level rises, the value of money decreases. This means that individuals now need more money to purchase the same goods and services as before. Therefore, to maintain the same level of purchasing power, individuals would need to have greater money balances. This concept is known as the quantity theory of money. Higher interest rates (A) are not necessarily related to changes in the price level. Consumer surpluses (B) are the difference between what consumers are willing to pay and what they actually pay for a good or service and do not directly relate to changes in the price level. Functional finance (D) and special drawing rights (E) are not relevant to this scenario.

If the Price Level Were to Rise,people Would Find That