As the Price Level Falls, the Quantity of Real Wealth

question 340

Multiple Choice

As the price level falls, the quantity of real wealth ________ and the aggregate quantity of real GDP demanded ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

---

Definitions:

Fair Value

The cost at which an asset could be sold or a liability could be settled, assuming a smooth transaction occurs between participants in the market on the date of valuation.

NCI Share

Refers to the equity interest in a subsidiary not attributable directly or indirectly to the parent company, also known as non-controlling interest.

Acquisition

An acquisition is a transaction in which one company takes over controlling interest in another company, acquiring its assets and operations to expand its own business.

Non-Controlling Interest

The portion of equity interest in a subsidiary not attributable to the parent company, which reflects the equity stake that other investors or shareholders have in the subsidiary.