When the Inflation Rate Decreases, PAE ______, Which in Turn

question 79

Multiple Choice

When the inflation rate decreases, PAE ______, which in turn causes Y to ______ because of ______.

• A)rises; rise; the income-expenditure multiplier
• B)rises; fall; the income-expenditure multiplier
• C)falls; rise; the wealth effect
• D)falls; fall; the wealth effect

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Definitions:

Nonverbal Behavior

Communication expressed through body movements, facial expressions, gestures, and posture, rather than words.

Intentions

Plans or aims that one intends to carry out.

Mood

A temporary state of mind or feeling that affects an individual's emotional state and perceptions.

Nonverbal Behavior

Communication actions other than spoken words, including body language, facial expressions, and gestures, that convey messages or emotions.