When the Price Level Falls

question 40

Multiple Choice

When the price level falls

• A)The interest rate falls because people will want to hold more money and so sell bonds.
• B)Firms will want to spend more on new business buildings and business equipment and households will want to spend more building new homes.
• C)Both A and B are correct.
• D)None of the above are correct.

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Definitions:

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.

Dependence

A state in which an organism requires a substance or condition for normal functioning or well-being, often associated with addiction.

Neurons

Specialized cells of the nervous system that transmit information to other nerve cells, muscle, or gland cells through electrical and chemical signals.

Dendrites

The branched extensions of a neuron that receive signals from other neurons and transmit them towards the cell body.