When a Change in the Price Level Causes a Change

question 97

Multiple Choice

When a change in the price level causes a change in the purchasing power of currency,which then changes the desired rate of consumption at all income levels,it is called

• A)the real-balance effect.
• B)the substitution effect.
• C)the open-economy effect.
• D)the interest rate effect.

---

Definitions:

Double-Entry Accounting

A bookkeeping system that requires every financial transaction to be recorded in at least two accounts, ensuring the accounting equation is always balanced.

Debit

A financial record that leads to a rise in assets or a fall in liabilities in a corporation's balance sheet.

Credit

An accounting entry recording a decrease in assets or increase in liabilities and equity, or a transaction where goods or services are received with a promise of future payment.

Vulnerable Populations

Groups of individuals at greater risk of experiencing health disparities due to factors like economic, social, or health status.