What Are the Effects of a Decrease in the Price

question 168

Multiple Choice

What are the effects of a decrease in the price level?

• A) Wealth falls, people lend less, interest rates fall, and the dollar appreciates.
• B) Wealth falls, people lend less, interest rates rise, and the dollar depreciates.
• C) Wealth rises, people lend more, interest rates rise, and the dollar appreciates.
• D) Wealth rises, people lend more, interest rates fall, and the dollar depreciates.

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Definitions:

Atoms

The basic units of matter, consisting of a nucleus surrounded by electrons.

Molecules

Molecules are groups of two or more atoms held together by chemical bonds, forming the smallest identifiable unit into which a pure substance can be divided while retaining its composition and chemical properties.

Ions

Atoms or molecules with an electrical charge due to the loss or gain of one or more electrons.

Molecule

A molecule is the smallest unit of a chemical compound that retains its chemical properties, consisting of two or more atoms bonded together.