When the price level rises
a) firms will spend less on new business buildings and business equipment and households will want to spend less building new homes.
b) the interest rate falls because people will want to hold more money and so sell bonds.
c) the interest falls because people will want to hold less money and so buy more bonds.
d) firms will spend more on new business buildings and business equipment and households will want to spend more on building new homes.
Answer: a) firms will spend less on new business buildings and business equipment and households will want to spend less building new homes.
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a. total; consumers b. marginal; consumers c. total; producers d. marginal; producers e. equilibrium; consumers
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Indicate whether the statement is true or false
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