The Pigou Effect Implies That

question 28

Multiple Choice

The Pigou effect implies that:

• A)when the price level decreases, consumer purchasing power goes up, and therefore consumers spend more
• B)when consumers spend more, the price level increases
• C)when consumer income increases, consumers spend more
• D)when the price level decreases, consumers save more, and therefore become wealthier

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Definitions:

Population Cycles

Oscillations in the size of a biological population as a result of changes in predation, resources, and other factors.

Survival Strategies

Techniques, behaviors, or adaptations that organisms use to survive and reproduce in their environments.

Typical Fish

Refers to common or representative fish species found in a given aquatic environment.