Which of the Following Is a Reason Why Decreases in the Price

question 248

Multiple Choice

Which of the following is a reason why decreases in the price level result in a rise in aggregate expenditure?

• A)Price level decreases cause firms and consumers to hold less money,which lowers the interest rate.Lower interest rates raise consumption and planned investment expenditures,which raises aggregate expenditure.
• B)Price level decreases reduce real wealth,which causes consumption spending and aggregate expenditure to rise.
• C)As the price level falls,government spending rises,which raises aggregate expenditure.
• D)Price level decreases in the United States relative to other countries' lower net exports,which raises aggregate expenditure.

---

Definitions:

Femoral Hernia

A bulge near the groin or inner thigh caused by intestine pushing through a weakness in the abdominal wall into the femoral canal.

Gangrene

The death of body tissue due to either a lack of blood flow or a serious bacterial infection.

Perforation

A medical condition in which a hole or tear occurs in the wall of any part of the gastrointestinal tract or other bodily organs.

Endoscope

A flexible tube with a light and camera attached, used to examine the interior of a bodily organ or space.