When the Price Level Falls,people Want to

question 49

Multiple Choice

When the price level falls,people want to

• A)hold more money and the quantity of aggregate goods and services demanded increases.
• B)hold more money and the quantity of aggregate goods and services demanded decreases.
• C)hold less money and the quantity of aggregate goods and services demanded increases.
• D)hold less money and the quantity of aggregate goods and services demanded decreases.

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Definitions:

Median

The score that falls in the middle of all the scores on the test; also called the 50th percentile.

Predictive Validity

When a scale is related to a concrete outcome or behavior.

Discriminant Validity

The extent to which a construct is truly distinct from other constructs by empirical standards, often assessed through its lack of correlation with unrelated constructs.

Convergent Validity

When a scale correlates with other scales measuring the same construct.