The price level effects consumer spending through changes in real
a. disposable income.
b. interest rates.
c. wealth.
d. GDP.
c
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Refer to Figure 10.7. A movement from point B to point D could be caused by
A) an increase in the target interest rate. B) an increase in consumer confidence. C) an increase in the term structure effect. D) a decrease in the expected rate of inflation.
If a "certificate of convenience and public necessity" protects a monopolist's position, the barrier to entry this firm relies on is called
A) a tariff. B) a government license. C) a patent. D) economies of scale.
The term opportunity cost refers to
A. The minimum price that a producer will accept for a product. B. The most a consumer is willing to exchange to get an item. C. The slope of the demand line for a consumer or slope of the supply line for the producer. D. All of the choices are correct.
Disequilibrium in the money market is mainly corrected via a change in:
A. Bond prices B. The price level C. Saving levels D. The money supply