As the Price Level Falls

question 23

Multiple Choice

As the price level falls

• A)people are more willing to lend,so interest rates rise.
• B)people are more willing to lend,so interest rates fall.
• C)people are less willing to lend,so interest rates fall.
• D)people are less willing to lend,so interest rates rise.

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Definitions:

Valence

In the field of motivation, valence refers to the emotional significance attached to something, determining how desirable or undesirable it is.

Expectancy Theory

A motivational theory suggesting that an individual's motivation is influenced by their expectation of achieving a desired outcome and the value they place on that outcome.

Anticipated Satisfaction

The expectation of fulfillment or happiness one believes will come from acquiring or achieving something in the future.

Goal-Setting Process

A systematic approach to setting objectives that are specific, measurable, achievable, relevant, and time-bound (SMART).