When the Price Level Falls

question 26

Multiple Choice

When the price level falls

• A)households want to lend more,so the interest rate rises making the quantity of goods and services demanded rise.
• B)households want to lend more,so the interest rate falls,making the quantity of goods and services demanded rise.
• C)households want to lend more,so the interest rate rises,making the quantity of goods and services demanded fall.
• D)None of the above are correct.

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Definitions:

Simplification

The process of altering a mathematical expression to make it easier to understand or work with, often by combining like terms or applying mathematical laws.

Mathematical Expression

An arrangement of numbers, symbols, and operators designed to represent a value or concept in mathematics.

Exponentiation

A mathematical operation involving two numbers, the base and the exponent, where the base is multiplied by itself the exponent number of times.

Mathematical Expression

A combination of numbers, symbols, and operators (such as +, -, *, /) that represents a quantitative relationship or value.