A Lower Domestic Price Level Tends To

question 45

Multiple Choice

A lower domestic price level tends to:

• A)reduce aggregate expenditures and lower the aggregate quantity of goods and services supplied.
• B)reduce aggregate expenditures and lower aggregate demand.
• C)reduce aggregate expenditures and raise aggregate demand.
• D)increase aggregate expenditures and raise the aggregate quantity of goods and services demanded.
• E)increase aggregate expenditure on foreign goods and lower net exports.