When the Price Level Decreases

question 111

Multiple Choice

When the price level decreases,

• A)the demand for money falls and the interest rate falls.
• B)holders of financial assets with fixed money values decrease their spending.
• C)holders of financial assets with fixed money values have less purchasing power.
• D)there is a decrease in consumer spending that is sensitive to changes in interest rates.

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Definitions:

Tip-Of-The-Tongue

A cognitive phenomenon where a person cannot fully retrieve a word but has a partial recall or feels that retrieval is imminent.

Memory Aids

Tools or techniques used to enhance or improve the ability to remember information.

Recall

The ability to retrieve and access information from one's memory that has been previously learned or experienced.

Spelling

The process or activity of writing or naming the letters of a word in the correct order.