Other Things Equal,in the Short Run a Lower Price Level

question 174

Multiple Choice

Other things equal,in the short run a lower price level leads households to

• A)increase consumption and firms to buy more capital goods.
• B)increase consumption and firms to buy fewer capital goods.
• C)decrease consumption and firms to buy more capital goods.
• D)decrease consumption and firms to buy fewer capital goods.

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Definitions:

Humerus

The long bone in the arm or forelimb that runs from the shoulder to the elbow.

Pectoralis Minor

A thin, triangular muscle located beneath the pectoralis major, involved in movements of the shoulder and scapula.

Serratus Anterior

A muscle on the side of the chest that assists in moving the shoulder blade.

Subclavius

A small muscle located under the clavicle, which plays a role in stabilizing the clavicle during arm and shoulder movements.