If the Money Supply Is Fixed,decreases in the Price Level

question 27

Multiple Choice

If the money supply is fixed,decreases in the price level

• A) reduce the total real output households and businesses want to purchase.
• B) reduce the average money cost of each transaction.
• C)shift the aggregate demand curve upward and to the right.
• D) shift the aggregate supply curve upward and to the left.
• E) raise interest rates and reduce total business borrowing.

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Definitions:

Treasury Stock

Treasury stock consists of shares that were issued and subsequently reacquired by the issuing company, thereby reducing the amount of outstanding stock on the open market.

Acquire Treasury Stock

This refers to the purchase of a company's own shares from the market, which reduces the amount of outstanding stock.

Earnings Per Share

A common financial metric used to indicate the profitability of a company on a per-share basis, calculated as net income divided by the number of outstanding shares.

Contributed Capital

The total value of all assets given to a company by its shareholders in exchange for shares of the company's stock.