1. The level of aggregate output demanded falls when the price level rises, because the resulting increase in the interest rate will lead to A. higher investment spending and lower consumption spending. B. lower investment spending and lower consumption spending. C. lower investment spending and higher consumption spending. D. higher investment spending and higher consumption spending.

1. The level of aggregate output demanded falls when the price level rises, because the resulting increase in the interest rate will lead to A. higher investment spending and lower consumption spending. B. lower investment spending and lower consumption spending. C. lower investment spending and higher consumption spending. D. higher investment spending and higher consumption spending.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.2P

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