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
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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.
Transcribed Image Text: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.
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