The Real-Balances Effect Suggests That A

question 188

Multiple Choice

The real-balances effect suggests that a:

• A)lower price level will decrease the demand for money, decrease interest rates, and increase consumption and investment spending.
• B)lower price level will decrease the real value of many financial assets and therefore cause an increase in spending.
• C)lower price level will increase the real value of many financial assets and therefore cause an increase in spending.
• D)higher price level will increase the real value of many financial assets and therefore cause an increase in spending.

---

Definitions:

Sales Message

A piece of communication designed to persuade a potential customer to purchase a product or service, highlighting benefits and value.

Reader's Attention

The focus or concentration a reader gives to a piece of writing, which can be influenced by various elements such as content, style, and layout.

Promise

A declaration or assurance that one will do a particular thing or that guarantees a certain outcome.

AIDA

An acronym that stands for Attention, Interest, Desire, and Action, describing stages of consumer engagement and marketing effectiveness.