Which of the Following Is a True Statement

question 75

Multiple Choice

Which of the following is a true statement?

• A)Firms and resource suppliers generally find it easier to reduce prices than to raise them.
• B)As the price level increases, interest rates will rise and therefore consumption and investment spending will also rise.
• C)An initial increase in aggregate demand may cause a further increase in aggregate demand because higher prices mean higher incomes.
• D)A decline in aggregate demand will primarily affect real output and employment if prices are inflexible downward.

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Definitions:

Hidden Messages

Information that is not apparent to the receiver but is revealed through analysis or deeper understanding.

Nondisclosure

The obligation not to reveal confidential information or secrets to unauthorized individuals or parties.

Feedback

Information provided about actions or behavior, which is used to reinforce or modify the actions or behavior in question.

Openness

The willingness to be receptive to new ideas, experiences, and information.