According to the Interest-Rate Effect,if the Price Level Falls Then

question 113

True/False

According to the interest-rate effect,if the price level falls then people will need to borrow fewer dollars,which will cause the interest rate to decrease and loan financed sales will increase.

---

Definitions:

Breakeven Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business or investment is not making a profit but also not losing money.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent and salaries.

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.

Breakeven Volume

The quantity of products sold or services rendered at which total revenues equal total costs, resulting in no net loss or gain.