A Fall in the Price Level Changes the Purchasing Power

question 115

Multiple Choice

A fall in the price level changes the purchasing power of money.This is relevant to the __________ effect.

• A) international trade
• B) real balance
• C) aggregate demand
• D) interest rate
• E) aggregate supply

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Definitions:

Internal Controls

Processes and procedures implemented by a business to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Customer Transactions

All financial transactions between a business and its customers, including sales, returns, and payments.

QBO

QuickBooks Online, a cloud-based accounting software solution for small to medium-sized businesses.

Internal Controls

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.