Which of the Following Is a True Statement

question 86

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:

Polygynous

A marital arrangement in which a man is married to more than one woman at the same time.

Endogamous

A social practice where marriage is restricted to members of the same social group or category, maintaining cultural or social homogeneity.

Model Minority Image

A stereotype that presents a particular minority group as a demographic whose members are perceived to achieve a higher degree of socio-economic success than the population average.

Racial Discrimination

Prejudicial treatment of individuals based on their race.