Which of the Following Sequences Results from a Decrease in the Price

question 132

Multiple Choice

Which of the following sequences results from a decrease in the price level?

• A) the money demand curve shifts leftward,the interest rate decreases,investment spending and autonomous consumption increase,the aggregate expenditure line shifts upward,and there is a rightward movement along the aggregate demand curve.
• B) the money demand curve shifts rightward,the interest rate increases,investment spending and autonomous consumption increase,the aggregate expenditure line shifts downward,and there is a rightward movement along the aggregate demand curve.
• C) the money demand curve shifts leftward,the interest rate decreases,investment spending and autonomous consumption increase,the aggregate expenditure line shifts upward,and there is a leftward movement along the aggregate demand curve.
• D) the money demand curve shifts rightward,the interest rate decreases,investment spending and autonomous consumption increase,the aggregate expenditure line shifts upward,and there is a movement upward along the aggregate demand curve.
• E) the money demand curve shifts leftward,the interest rate increases,investment spending and autonomous consumption increase,the aggregate expenditure line shifts upward,and there is a leftward movement along the aggregate demand curve.

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Definitions:

Annual Cash Inflow

The total amount of money received by a business or project within a year from all sources.

Equipment

Tools or machinery used for specific tasks, particularly in industries and manufacturing.

Financially Attractive

Describes an investment or project that is expected to deliver a favorable financial return or profit.

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting the amount for which it could be sold or disposed.