Another Term for the Real-Balance Effect Is

question 109

Multiple Choice

Another term for the real-balance effect is

• A) the substitution effect.
• B) the wealth effect.
• C) the indirect effect.
• D) the interest rate effect.

---

Definitions:

Demand Schedule

A grid outlining the quantities of an item or service that people are ready and able to buy across a range of prices.

Marginal Cost

The uptick in aggregate cost due to the output of an extra unit of a product or service.

Monopolist

An entity that is the sole provider of a particular product or service in a market, possessing significant market power and control over prices.

Output

The amount of goods or services produced by a person, machine, factory, or company within a certain period.