Which of the Following Does Not Help Explain the Direction

question 31

Multiple Choice

Which of the following does not help explain the direction the quantity of aggregate goods demanded changes when the price level decreases?

• A)consumer wealth rises
• B)borrowing rises
• C)each dollar is worth more domestic goods
• D)the dollar appreciates relative to other currencies

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Definitions:

Total Revenue

The total amount of money generated by the sale of goods or services before any expenses are subtracted.

Fixed Cost

Expenses that do not vary with the level of production or sales, such as rent or salaries.

Variable Cost

Costs that vary directly with the level of production or with volume of output.

Inelastic Demand

A market situation where the demand for a product does not significantly change with a change in its price.