The Aggregate Quantity of Goods and Services Demanded Changes as the Price

question 98

Multiple Choice

The aggregate quantity of goods and services demanded changes as the price level rises because

• A)real wealth falls,interest rates rise,and the dollar appreciates.
• B)real wealth falls,interest rates rise,and the dollar depreciates.
• C)real wealth rises,interest rates fall,and the dollar appreciates.
• D)real wealth rises,interest rates fall,and the dollar depreciates.

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Definitions:

APC

Average Propensity to Consume, the fraction of total disposable income that households plan to spend on consumption as opposed to saving.

Income

The financial gain accrued by an individual or entity within a specified period, often through wages, salaries, or investments.

APC

Usually refers to Average Propensity to Consume, which is the fraction of income spent on consumption rather than saved.

Income

Money received, especially on a regular basis, for work or through investments, constituting the financial resource available to individuals or entities for expenditure or investment.