A Fall in the Price Level

question 83

Multiple Choice

A fall in the price level

• A)increases the real value of money balances which causes borrowing to decrease,leading to a decrease in investment and the quantity demanded of aggregate output.
• B)causes exports to rise and imports to fall,leading to an increase in quantity demanded of aggregate output.
• C)leads to an increase in the quantity of aggregate output because of the indirect effect.
• D)causes the quantity demanded of aggregate output to increase as long as the fall is less than the fall in the price level in other countries.

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Definitions:

Unprotected Sex

Engaging in sexual activities without the use of contraceptives or barrier methods, increasing the risk of sexually transmitted infections (STIs) and unwanted pregnancies.

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system and can lead to AIDS if not treated.

Market Economy

An economic system in which production and prices are determined by unrestricted competition between privately owned businesses.

Cash Capital

The amount of liquid assets or cash that a company or individual has available for immediate use or investment purposes.