The Level of Aggregate Output Demanded Falls When the Price

question 151

Multiple Choice

The level of aggregate output demanded falls when the price level rises, because the resulting increase in the interest rate will lead to

• A) higher investment spending and higher consumption spending.
• B) lower investment spending and higher consumption spending.
• C) higher investment spending and lower consumption spending.
• D) lower investment spending and lower consumption spending.

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Definitions:

Endoderm

The innermost layer of cells or tissue of an embryo in early development, which gives rise to the lining of the digestive and respiratory systems.

Periderm

A protective tissue in plants, making up the outer layer of the bark in woody plants.

Yolk Sac

An extra-embryonic membrane in early embryonic development that provides nutrition to the developing embryo.

Prostate Gland

A gland in males located below the bladder surrounding the urethra, secreting fluid that is a component of semen.