A Decrease in the Price Level

question 82

Multiple Choice

A decrease in the price level

• A) shifts the AD curve to the right.
• B) shifts the AD curve to the left.
• C) causes an upward movement along the existing AD curve.
• D) causes a downward movement along the existing AD curve.
• E) none of the above

Understand the criteria used by financing institutions in lending decisions.

Recognize the significance of debt-to-equity ratios for new and young businesses.

Differentiate between various types of financial obligations on a balance sheet.

Comprehend methods of financing for purchased equipment.