Other Things the Same,as the Price Level Falls,the Real Value

question 95

Multiple Choice

Other things the same,as the price level falls,the real value of a dollar

• A)rises,and interest rates rise.
• B)rises,and interest rates fall.
• C)falls,and interest rates rise.
• D)falls,and interest rates fall.

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Definitions:

Average Fixed Costs

The constant expenses in production, which remain unchanged regardless of output levels, when divided by the volume of output created.

U-shaped

A description often used in economics to describe the graphical representation of a situation where certain costs initially decrease, reach a minimum, and then start to increase as output expands.

TVC

Total Variable Cost; the entire cost associated with producing a given output level that varies with the quantity of output.