Which of the following will increase when the price level rises?
A)money supplied
B)the real interest rate
C)real GDP demanded
D)the real level of investment

Name: Which of the following will increase when the price level rises? A)money supplied B)the real interest rate C)real GDP demanded D)the real level of investment
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Question

Quizplus · Accepted Answer

When the price level rises, the real interest rate tends to increase as lenders demand higher rates to compensate for the decreased purchasing power of money.

Which of the Following Will Increase When the Price Level