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:

Total Assets

The sum of all assets owned by a company, including both current and noncurrent assets, representing the total resources available to the firm.

Trend Balance Sheet

A trend balance sheet is a financial statement that shows the progression of key financial data over a series of periods, illustrating trends.

Long-Term Liabilities

Obligations or debts that a company is responsible for paying which are due more than one year in the future.

Total Liabilities & Equity

The sum of all financial obligations and owners' equity of a business, representing the sources of funding for its assets.