What Are the Effects of a Decrease in the Price

question 20

Multiple Choice

What are the effects of a decrease in the price level?

• A) People hold less money, so they lend less, and the interest rate rises.
• B) People hold less money, so they lend more, and the interest rate falls.
• C) People hold more money, so they lend more, and the interest rate rises.
• D) People hold more money, so they lend less, and the interest rate falls.

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Definitions:

Developmental Norm

Common patterns or ranges of behaviors, activities, and skills that are typical at specific ages or stages of development.

Crystallized Intelligence

The aspect of intelligence that involves the ability to use learned knowledge and experience.

Fluid Intelligence

The capacity to think logically and solve problems in novel situations, independent of acquired knowledge.

Concrete Operational Thought

A stage in Jean Piaget's theory of cognitive development where children (ages 7-12 approximately) gain the ability to think logically about concrete events.