Why Does an Increase in the Price Level Result in a Decrease

question 248

Multiple Choice

Why does an increase in the price level result in 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

---

Definitions:

Circadian Rhythm

The natural, internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.

Infradian

Referring to biological rhythms with cycles that are longer than a day, such as monthly cycles or seasonal behaviors.

Ultradian

Pertaining to recurrent periods or cycles repeated throughout a 24-hour day, such as cycles of sleep stages.

Alpha Waves

Brain waves that are present when an individual is relaxed, awake, but not actively processing information.