Other Things the Same, a Decrease in the Price Level

question 24

Multiple Choice

Other things the same, a decrease in the price level makes the dollars people hold worth

• A) more, so they are willing to spend more.
• B) more, so they are willing to spend less.
• C) less, so they are willing to spend more.
• D) less, so they are willing to spend less.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often reported as a non-operating expense on the income statement.