The Change in the Quantity Demanded of a Good Resulting

question 25

Multiple Choice

The change in the quantity demanded of a good resulting from a change in relative price with the level of satisfaction held constant is called the ________ effect.

• A) Giffen
• B) real price
• C) income
• D) substitution

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Definitions:

Expansionary Monetary Policy

A policy by central banks to increase the money supply and decrease interest rates to stimulate economic growth.

Keynesian Economist

An economist who believes in Keynesian economics, which advocates for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.

Savings

Money that is put aside for future use rather than spent immediately, often in accounts that yield interest.

Interest Rates

The percentage of a loan charged as a cost of borrowing or paid as a part of return on savings, typically expressed as an annual percentage of the principal.