When the Price Level Falls

question 40

Multiple Choice

When the price level falls

• A)The interest rate falls because people will want to hold more money and so sell bonds.
• B)Firms will want to spend more on new business buildings and business equipment and households will want to spend more building new homes.
• C)Both A and B are correct.
• D)None of the above are correct.

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Definitions:

Contingency Theory of Leadership

A leadership concept suggesting the effectiveness of a leader's style is contingent on the context or environment.

Fiedler

Refers to Fred Fiedler's Contingency Theory which posits that leadership effectiveness is dependent on both the characteristics of the leader and the situation.

Situational Control

Situational control is the capacity to manage and influence the outcome of specific situations, often through adaptive strategies and decision-making.

Path-Goal Theory

A leadership theory that suggests a leader's behavior is contingent to the satisfaction, motivation, and performance of their subordinates.