According to the Law of Aggregate Demand, as the Price

question 41

Multiple Choice

According to the law of aggregate demand, as the price level rises, aggregate

• A) quantity demanded does not change.
• B) demand decreases.
• C) quantity demanded decreases.
• D) demand increases.
• E) quantity demanded increases.

---

Definitions:

Fed's Actions

Measures taken by the Federal Reserve to influence the U.S. economy's money supply and interest rates.

Net Exports

Spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports).

Central Bank

An institution that manages a country's currency, money supply, and interest rates, usually with the aim of managing inflation and ensuring financial stability.

Federal Reserve Act

The act of Congress that created the Federal Reserve System in 1913, establishing the central banking system of the United States.