According to the Interest Rate Effect,an Increase in the Price

question 147

Multiple Choice

According to the interest rate effect,an increase in the price level leads to ________ in the interest rate,and therefore to ________ in the quantity of aggregate demand.

• A) no change; no change
• B) a rise; a fall
• C) a rise; a rise
• D) a fall; a fall
• E) a fall; a rise

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