A Decrease in the Price Level Will Have Which of the Following

question 63

Multiple Choice

A decrease in the price level will have which of the following effects?

• A)The real value of dollar-denominated assets will rise.
• B)The aggregate expenditure line will shift downward.
• C)The equilibrium level of output demanded will fall.
• D)There will be upward movement along a particular aggregate demand curve.
• E)The aggregate demand curve will shift leftward.

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Definitions:

1933 Act

Also known as the Securities Act of 1933, it is a federal law enacted to ensure more transparency in financial statements and prevent fraud in the securities market.

Disclosure

The action of making new or secret information known, often required in legal and financial transactions to ensure transparency.

Dodd-Frank Act

Comprehensive financial reform legislation passed in 2010 in the United States to enhance financial stability and consumer protection.

SEC Authority

The legal power granted to the U.S. Securities and Exchange Commission to regulate and supervise the securities industry, including enforcing laws against market manipulation and fraud.