What Are the Effects of a Decrease in the Price

question 168

Multiple Choice

What are the effects of a decrease in the price level?

• A) Wealth falls, people lend less, interest rates fall, and the dollar appreciates.
• B) Wealth falls, people lend less, interest rates rise, and the dollar depreciates.
• C) Wealth rises, people lend more, interest rates rise, and the dollar appreciates.
• D) Wealth rises, people lend more, interest rates fall, and the dollar depreciates.

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