Multiple Choice
A decrease in the price level in an economy is likely to cause a:
A) decrease in the real value of dollar-denominated assets.
B) downward shift of the aggregate expenditure line.
C) decrease in the equilibrium level of output demanded.
D) downward movement along the aggregate demand curve.
E) leftward shift of the aggregate demand curve.
Correct Answer:
Verified
Correct Answer:
Verified
Q117: The fraction of an increase in income
Q118: Suppose an increase in disposable income from
Q119: If the marginal propensity to save (MPS)is
Q120: Movement along the aggregate expenditure line is
Q121: Expectations that the price level will decrease
Q123: An upward shift of the consumption function
Q124: At the equilibrium level of real gross
Q125: The higher the opportunity cost of borrowing,the
Q126: The difference between consumption spending and disposable
Q127: The figure given below shows the income-expenditure