The Level of Aggregate Output Demanded Falls When the Price

question 151

Multiple Choice

The level of aggregate output demanded falls when the price level rises, because the resulting increase in the interest rate will lead to

• A) higher investment spending and higher consumption spending.
• B) lower investment spending and higher consumption spending.
• C) higher investment spending and lower consumption spending.
• D) lower investment spending and lower consumption spending.

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Definitions:

Desegregation

The process of ending the separation of two or more groups based on race, ethnicity, or other discriminating factors, especially in relation to public schools, housing, and other public spaces.

Mahatma Gandhi

An Indian lawyer, anti-colonial nationalist, and political ethicist who employed nonviolent resistance to lead the successful campaign for India's independence from British Rule.

Civil Disobedience

The refusal to comply with certain laws or to pay taxes and fines, as a peaceful form of political protest.

Southern Manifesto

A document written in 1956 by legislators in the United States Congress opposing racial integration in public places.