Which of the Following Is a Reason Why Decreases in the Price

question 133

Multiple Choice

Which of the following is a reason why decreases in the price level result in a rise in aggregate expenditure?

• A)Price level decreases cause firms and consumers to hold less money, which lowers the interest rate.Lower interest rates raise consumption and planned investment expenditures, which raises aggregate expenditure.
• B)Price level decreases reduce real wealth, which causes consumption spending and aggregate expenditure to rise.
• C)As the price level falls, government spending rises, which raises aggregate expenditure.
• D)Price level decreases in the United States relative to other countries lower net exports, which raises aggregate expenditure.
• E)As the price level falls, households become more optimistic about the future.

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Definitions:

Schizoid Personality Disorder

A personality disorder characterized by a long-term pattern of detachment from social relationships and a limited range of emotional expression in interpersonal settings.

Social Relationships

Connections or interactions between individuals in a social context, which can influence behavior and emotions.

Schizoid Personality Disorder

A personality disorder marked by a lack of interest in social relationships, a tendency towards a solitary lifestyle, and emotional coldness.

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The act of expressing disapproval of someone or something based on perceived faults or mistakes.