Other Things Being Equal, a Fall in the Domestic Price

question 103

Multiple Choice

Other things being equal, a fall in the domestic price level leads to a rise in private- sector wealth and thus

• A)a downward shift in the AE curve.
• B)an increase in desired consumption.
• C)domestic goods appearing less attractive to foreigners.
• D)an increase in the average propensity to save.
• E)a downward shift in net exports.

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Definitions:

Distress

Extreme anxiety, sorrow, or pain, often affecting a person’s mental or physical health.

Abnormal

Deviating from what is considered normal or typical, often in reference to behavior or physical conditions.

Danger To Self

A situation or state in which an individual poses a significant risk of harm to their own health, life, or well-being.

Abnormal Functioning

Patterns of behaviors, thoughts, or emotions considered to deviate significantly from societal norms or expectations, often causing distress or disability.