Which of the Following Would Cause Prices to Drop

question 72

Multiple Choice

Which of the following would cause prices to drop?

• A)a demand for higher wages
• B)increased production by business
• C)increased taxes on business
• D)a reduction in the money supply
• E)high levels of demand by customers

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Definitions:

Final Payment

The last payment made to settle the balance of a financial obligation, such as a loan or mortgage.

Borrower

An individual, company, or institution that receives funds from a lender under the condition of paying back the borrowed amount plus interest.

Compounded Monthly

Interest calculated monthly on the principal sum plus previously earned interest.

Equal Payments

Regularly scheduled payments of the same amount, common in loans and amortization plans.