If Prices Fall,then Real Wealth ________ and the Quantity of Aggregate

question 93

Multiple Choice

If prices fall,then real wealth ________ and the quantity of aggregate demand ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; decreases
• D) decreases; increases
• E) is unaffected; is unaffected

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Definitions:

Absolute Threshold

The minimum intensity level of a stimulus that an individual can detect at least 50% of the time.

Exposure

The act of making something visible or subjecting someone to an experience or influence.

Attention

The mental ability to focus on a single element of one's surroundings while disregarding other stimuli.

Weber's Law

A principle of perception that states the change in a stimulus that will be just noticeable is a constant ratio of the original stimulus.