One reason a fall in the price level increases the quantity of goods and service

Question

One reason a fall in the price level increases the quantity of goods and services demanded is: Consumers become wealthler which leads to more consumer spending @Interest rates rise which leads to more investment spending D Exports fall D All of the above. QUESTION 2 Which of the following current events questions is false? 0 The current US. annual inflation rate is less than 5%. The U.S. is running annual deficits of over $10 trillion. The U.S. unemployment rate is currently under 7%. None of the above. QUESTION 3 A recession in the U.S. could be caused by: a recession in counties that import goods from the U.S D a drop in investment spending a drop in consumer spending

Explanation / Answer

Question 1. A fall in the price level decreases the real price of the commodities and thus people become wealthier.This causes the consumers to be wealthier and thus increase in the consumption spending.

Question 2. None of the above

Question 3. A drop in investment spending

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