When the Supply of Credit Is Fixed, an Increase in the Price

question 80

Multiple Choice

When the supply of credit is fixed, an increase in the price level stimulates the demand for credit, which in turn reduces consumption and investment spending. This argument is called the:

• A) real balances effect.
• B) interest-rate effect.
• C) net exports effect.
• D) substitution effect.

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Definitions:

Emotional Display Rules

Emotional Display Rules are societal guidelines about the appropriate ways to express emotions in various social contexts, which can vary by culture, situation, or relationship.

Conscious Control

The ability to deliberately regulate one's own thoughts, emotions, or actions.

Universal

Something that is applicable everywhere or in all cases; general.

Automatic

Processes or actions that occur without conscious thought or intention, often as a result of learning or habituation.