A Fall in the Price Level

question 70

Multiple Choice

A fall in the price level:

• A)reduces the value of money in peoples' pockets, so people buy less goods.
• B)reduces the value of money in peoples' pockets, so people buy more goods.
• C)increases the value of money in peoples' pockets, so people buy less goods.
• D)increases the value of money in peoples' pockets, so people buy more goods.

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Definitions:

Principals

In a commercial context, the parties who enter into a contract or agreement, authorizing agents to act on their behalf in transactions.

Contracts

Legally binding agreements between two or more parties that create mutual obligations enforceable by law.

Actual Authority

The specific power given to an agent by a principal, derived from their agreement and can be express or implied based on their actions.

Apparent Authority

The perception by a third party that an agent has the authority to act on behalf of a principal, even if such authority has not been explicitly or implicitly granted.