The Pigou Effect Is

question 98

Multiple Choice

The Pigou effect is

• A)the stimulus to aggregate demand from a fall in the interest rate.
• B)the effect of a cut in taxes on the aggregate demand curve.
• C)the effect of a fall in prices on aggregate demand curve.
• D)the direct stimulus to consumption because of an increase in the real value of the money supply.

---

Definitions:

FOB

stands for Free On Board, a term used in shipping indicating that the seller is responsible for goods until they are loaded onto a shipping vessel.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of those involved.

Destination Contract

A contract for the sale of goods where the seller is required to ship the goods to a specific location and title passes to the buyer upon delivery at that location.

Risk of Loss

A legal term concerning who bears the responsibility for damage or loss of goods under a contract at any given point in a transaction.