Aggregate Demand ________ If the Expected Inflation Rate Increases Because

question 75

Multiple Choice

Aggregate demand ________ if the expected inflation rate increases because ________.

• A) does not change; inflation does not affect the aggregate demand curve
• B) decreases; people wait for the exchange rates to change before making purchases
• C) increases; people want to make purchases now before the price of goods and services begin to increase
• D) increases; people expect to experience increases in the cost of living as the inflation begins
• E) decreases; people want to wait for the price of goods and services begin to decrease