What Are the Effects of a Decrease in the Price

question 20

Multiple Choice

What are the effects of a decrease in the price level?

• A) People hold less money, so they lend less, and the interest rate rises.
• B) People hold less money, so they lend more, and the interest rate falls.
• C) People hold more money, so they lend more, and the interest rate rises.
• D) People hold more money, so they lend less, and the interest rate falls.

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Definitions:

Social Sustainability

The ability of a society to develop processes and structures which not only meet the needs of its current members but also support the ability of future generations to maintain a healthy community.

Just-In-Time (JIT)

An inventory management strategy that aims to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

Multiple Sourcing

A procurement strategy where a company uses several suppliers for a certain component or product to reduce dependency on a single source.

Request for Proposal (RFP)

A document issued by a company asking for detailed proposals from potential suppliers or contractors for a specific project or service.