If the Price Level Falls,the Real Value of a Dollar

question 4

Multiple Choice

If the price level falls,the real value of a dollar

• A)rises,so people will want to buy more.This response helps explain the slope of the aggregate demand curve.
• B)rises,so people will want to buy more.This response shifts aggregate demand to the right.
• C)falls,so people will want to buy less.This response helps explain the slope of the aggregate demand curve.
• D)falls,so people will want to buy less.This response shifts aggregate demand to the left.

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Definitions:

Amortized Loan

A loan with scheduled periodic payments that consist of both principal and interest, typically paid monthly, until the loan is fully repaid at the end of its term.

Principle

Principle refers to the original sum of money borrowed in a loan or the initial amount of investment before earnings or losses.

Interest Amount

the sum paid or charged for the use of money or for borrowing money.

Periodic Interest Rate

The interest rate charged or earned over a particular period of time, often expressed as a percentage.