The quantity of aggregate goods and services demanded rises when the a. price level falls, because the interest rate rises. b. price level falls, because the interest rate falls. c. price level rises, because the interest rate rises. d. price level rises, because the interest rate falls

The quantity of aggregate goods and services demanded rises when the a. price level falls, because the interest rate rises. b. price level falls, because the interest rate falls. c. price level rises, because the interest rate rises. d. price level rises, because the interest rate falls

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 6SCQ: The Consumer Price Index is subject to the substitution bias and me quality/new goods bias. Are the...

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Question

The quantity of aggregate goods and services demanded rises when the

	a.	price level falls, because the interest rate rises.
	b.	price level falls, because the interest rate falls.
	c.	price level rises, because the interest rate rises.
	d.	price level rises, because the interest rate falls.

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