Decreases in the price level will
A) raise consumption because real wealth increases.
B) lower consumption because goods and services are less affordable.
C) raise consumption because goods and services are more affordable.
D) lower consumption because real wealth decreases.
A
You might also like to view...
Which of the following is the most likely effect of lower apple juice prices on the price and quantity purchased of orange juice, a substitute product?
a. The price of orange juice will increase, and the quantity purchased will fall. b. The price of orange juice will fall, and the quantity purchased will increase. c. The price of orange juice will increase, and the quantity purchased will increase. d. The price of orange juice will fall, and the quantity purchased will fall.
The AD curve can be shifted by:
A. monetary policy only. B. neither fiscal nor monetary policy. C. fiscal policy only. D. both fiscal and monetary policy.
A cost or benefit of a good imposed on people other than the consumers or producer of a good is called a(n):
A. public good. B. merit good. C. private good. D. externality.
In the United States, health care spending on people ________ is six times greater than on people ________
A) under age 3; over age 65 B) aged 18 to 24; 25 to 44 C) over age 65; aged 18 to 24 D) over age 65; aged 25 to 44