The Wealth Effect Is the Tendency for

question 115

Multiple Choice

The wealth effect is the tendency for

• A) changes in the price level to change nominal wealth and consumption.
• B) changes in the price level to change real wealth and consumption.
• C) household wealth to fluctuate with changes in the level of economic activity.
• D) the marginal propensity to rise with increases in wealth.

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Definitions:

Quality of Product

The degree to which a product meets the specified criteria and satisfies the customer's expectations.

Sigma

A statistical term that measures how far a given process deviates from perfection. The term is notably used in Six Sigma methodology to measure the number of defects in a process.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values from the mean.

Benchmarking

The process of comparing key points within your business with comparable points in another external entity.