According to Liquidity Preference Theory,if the Price Level Increases,then the Equilibrium

question 7

Multiple Choice

According to liquidity preference theory,if the price level increases,then the equilibrium interest rate

• A)rises and the aggregate quantity of goods demanded rises.
• B)rises and the aggregate quantity of goods demanded falls.
• C)falls and the aggregate quantity of goods demanded rises.
• D)falls and the aggregate quantity of goods demanded falls.

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