Why Does an Increase in the Price Level Cause a Decrease

question 208

Multiple Choice

Why does an increase in the price level cause a decrease in the aggregate quantity of goods and services demanded?

• A)because as wealth rises, interest rates rise, and the dollar appreciates
• B)because as wealth rises, interest rates fall, and the dollar depreciates
• C)because as wealth falls, interest rates rise, and the dollar appreciates
• D)because as wealth falls, interest rates fall, and the dollar depreciates

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