Aggregate Demand ________ If the Expected Inflation Rate Increases Because

question 275

Multiple Choice

Aggregate demand ________ if the expected inflation rate increases because ________.

• A)increases;people expect to receive cost of living raises as the inflation begins
• B)decreases;people wait for the exchange rates to change before making purchases
• C)does not change;inflation does not affect the aggregate demand curve
• D)increases;people want to make purchases now before the price of goods and services begin to increase
• E)decreases;people want to wait for the price of goods and services begin to decrease

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