Suppose the Price Level Decreases

question 17

Multiple Choice

Suppose the price level decreases.Other things constant, will people consume more or less?  

• A) more, because nominal income will fall 
• B) less, because nominal income will rise 
• C) more, because the real value of people's wealth will increase 
• D) less, because real income will decrease

---

Definitions:

Correlated With Crime

A term implying a statistical relationship between two variables, where changes in one variable are associated with changes in levels of crime.

Legal Drugs

Substances that are legally available, either over-the-counter or by prescription, and are used for medical purposes.

Illegal Drugs

Substances whose production, sale, possession, or use is prohibited by law due to their potential for abuse and harm.

Social-Psychological Theory

A framework that examines how social influences affect individual thoughts, feelings, and behaviors, focusing on the interplay between social and psychological factors.