A Fall in the Price Level

question 102

Multiple Choice

A fall in the price level

• A) increases the real value of money balances, which causes borrowing to decrease, leading to a decrease in investment and total planned real expenditures.
• B) causes exports to rise and imports to fall, leading to an increase in total planned real expenditures.
• C) leads to an increase in total planned real expenditures because of the indirect effect.
• D) causes total planned real expenditures to increase as long as the fall is less than the fall in the price level in other countries.

---

Definitions:

Two-Word Verb

A verb that combines a basic verb with a preposition or adverb to create a distinct meaning, for example, "look up."

Two-Word Verb

A verb phrase composed of a verb and a preposition or adverb enhancing the verb's meaning, e.g., "check out."

Two-Word Verb

A verb phrase consisting of a verb and a preposition or an adverb; together, they function as a single semantic unit in a sentence.

Two-Word Verb

A two-word verb is a verb that consists of a verb plus a preposition or adverb which modifies or changes its meaning (e.g., "look up").