If the Price Level Increases,other Things Constant,consumption Spending

question 17

Multiple Choice

If the price level increases,other things constant,consumption spending

• A)increases because real income rises
• B)decreases because real income rises
• C)increases because the real value of wealth increases
• D)decreases because the real value of wealth decreases
• E)increases because nominal income increases

---

Definitions:

Dividend Yield

A ratio in finance that reveals the comparison between a company's yearly dividend distribution and its share price.

Required Return

Required Return is the minimum annual percentage earned by an investment that will induce individuals or companies to put their money into a particular security or project.

Stock Price

The cost of purchasing a share of a company as quoted on the stock exchange.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments to its shareholders.