When the price level falls, people want to
a. hold more money and the quantity of aggregate goods and services demanded increases.
b. hold more money and the quantity of aggregate goods and services demanded decreases.
c. hold less money and the quantity of aggregate goods and services demanded increases.
d. hold less money and the quantity of aggregate goods and services demanded decreases.
c
You might also like to view...
A an example of a game in which a leader moves first, and then the other rivals follow is a ________ game
A) Stackelberg model B) Cournot model C) finite move D) tit-for-tat
Enlarging the number of grades a school will serve may reduce the amount of school segregation
Indicate whether the statement is true or false
If your income rises at 5 percent and inflation has risen at 3 percent, then the purchasing power of your income has
A. increased. B. eroded. C. stayed the same. D. fallen, but will increase due to indexing.
If a monopolistically competitive firm breaks even, the firm
A) is earning an accounting profit and will have to pay taxes on that profit. B) is earning zero accounting and zero economic profit. C) should advertise its product to stimulate demand. D) should expand production.