Which of the following is an impact of an increase in the general price level?
A)An increase in aggregate demand for goods and services
B)A decrease in aggregate supply of goods and services
C)An increase in the price of the financial assets
D)A decrease in supply of bonds and other assets
E)An increase in interest rates

Question

Quizplus · Accepted Answer

An increase in the general price level, or inflation, often leads to higher interest rates as central banks may raise rates to control inflation.

Which of the Following Is an Impact of an Increase