Which of the Following Questions Is False

question 150

Multiple Choice

Which of the following questions is false?

• A) Purchasing power and the price level are inversely related.
• B) The real balance effect refers to the change in the purchasing power of dollar-denominated assets as a result of a change in the price level.
• C) The aggregate demand curve slopes downward because of the real balance, interest rate, and international trade effects.
• D) A change in the quantity demanded of Real GDP is directly brought about by a change in interest rates.

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