The Factors Which Affect the Amounts That Consumers, Businesses, Government

question 65

Multiple Choice

The factors which affect the amounts that consumers, businesses, government, and foreigners wish to purchase at each price level are the:

• A)wealth, interest rate, and foreign trade effects.
• B)determinants of aggregate supply.
• C)determinants of aggregate demand.
• D)sole determinants of the equilibrium price level and the equilibrium real output.

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Definitions:

Merchandise

Products or goods that are bought, sold, or traded in the course of business.

Trade Discount

A reduction from the list price granted by a seller to a buyer, often based on volume or trade practices.

List Price

The initial sales price of a product or service before any discounts or allowances are applied.

Cash Discount

A reduction in the invoice amount offered by a seller to a buyer as an incentive for early payment, typically within specific terms.