The Intertemporal Substitution Effect of a Change in the Price

question 142

Multiple Choice

The intertemporal substitution effect of a change in the price level results from a

• A) change in the price of foreign goods relative to domestic goods.
• B) change in the purchasing power of wealth.
• C) change in the price of current goods relative to future goods.
• D) Both answers B and C are correct.

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Definitions:

Phobic Stimuli

Objects or situations that provoke an irrational and excessive fear response.

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia that are capable of locomotion and responsive to their environment.

Epidemiology

The study of how often diseases occur in different groups of people and why, aimed at controlling health problems.

Diagnosis

The identification of the nature of an illness or other problem by examination of the symptoms.