Multiple Choice
One explanation for the inverse relationship between the price level and output,as depicted by a downward-sloping AD curve,is that,other things being held constant,a fall in the price level ___________ the ___________ of people's nominal wealth and so people spend on consumption.This is called the ___________ on spending.
A) increases;real value;real-balances effect
B) increases;nominal value;real-balances effect
C) decreases;real value;real-balances effect
D) decreases;nominal value;real-balances effect
E) increases;real value;foreign trade effect
Correct Answer:
Verified
Related Questions
