The Interest Rate Effect on Aggregate Demand Indicates That A(n)

question 10

Multiple Choice

The interest rate effect on aggregate demand indicates that a(n)

• A) decrease in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending.
• B) decrease in the price level will decrease the demand for money, decrease interest rates, and increase consumption and investment spending.
• C) increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending.
• D) increase in the supply of money will increase interest rates and decrease interest-sensitive consumption and investment spending.

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