When the Price Level Falls

question 26

Multiple Choice

When the price level falls

• A)households want to lend more,so the interest rate rises making the quantity of goods and services demanded rise.
• B)households want to lend more,so the interest rate falls,making the quantity of goods and services demanded rise.
• C)households want to lend more,so the interest rate rises,making the quantity of goods and services demanded fall.
• D)None of the above are correct.

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