When the General Price Level Falls

question 130

Multiple Choice

When the general price level falls

• A) consumption rises as a result of the real wealth effect.
• B) consumption decreases as a result of the multiplier effect.
• C) investment falls as a result of the real wealth effect.
• D) investment falls as a result of the multiplier effect.

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Definitions:

Ca2+

The chemical symbol for calcium ions, which play critical roles in cellular signaling, muscle contraction, and neurotransmitter release among other physiological functions.

Smooth Muscle Cell

A type of involuntary, non-striated muscle found in the walls of internal organs such as the stomach, intestines, and blood vessels, controlling their movements.

Depolarize

To decrease the electrical potential across the cellular membrane as a prelude to generating an action potential.

Visceral Smooth Muscle

Muscle tissue found within the walls of internal organs, responsible for their involuntary movement such as contraction and relaxation.