According to the Intertemporal Substitution Effect, When the Price Level

question 9

Multiple Choice

According to the intertemporal substitution effect, when the price level increases, the interest rate

• A)rises and the quantity of real GDP demanded decreases.
• B)is not affected.
• C)rises and the quantity of real GDP demanded increases.
• D)falls and the quantity of real GDP demanded decreases.

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