A rise in the overall price level means that:
A) a given number of dollars won't buy as much real goods and services.
B) dollar-denominated assets have lost their value.
C) the cost of living has gone down.
D) None of these is true.
Correct Answer:
Verified
Q19: Consumption:
A) is a major component of aggregate
Q27: Higher interest rates motivate:
A) firms to invest
Q28: Increases in the overall price level:
A) result
Q29: Higher interest rates make it:
A) more expensive
Q30: When the price level increases people:
A) feel
Q32: The wealth effect explains the:
A) downward-sloping aggregate
Q33: Increases in the overall price level:
A) increases
Q34: Consumption spending is:
A) negatively related to the
Q35: Higher interest rates caused by an increase
Q36: When prices rise, the interest rate:
A) tends
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