Which of the Following Sequences Results from an Increase in the Price

question 134

Multiple Choice

Which of the following sequences results from an increase 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 downward and there is a leftward movement along the aggregate demand curve.
• B) the money demand curve shifts rightward,the interest rate increases,investment spending and autonomous consumption decrease,the aggregate expenditure line shifts downward and there is a leftward movement along the aggregate demand curve.
• C) the money demand curve shifts leftward,the interest rate increases,investment spending and autonomous consumption increase,the aggregate expenditure line shifts downward and there is a leftward movement along the aggregate demand curve.
• D) the money demand curve shifts leftward,the interest rate drops,investment spending and autonomous consumption decrease,the aggregate expenditure line shifts downward and there is a leftward movement along the aggregate demand curve.
• E) 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.

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