Aggregate demand rises when the price level decreases because the lower price level causes
A) the market demand for all goods and services to decrease.
B) the supply of money to decrease.
C) the demand for money to rise causing interest rates to fall.
D) the demand for money to fall causing interest rates to fall.
Answer: D) the demand for money to fall causing interest rates to fall.
Economics
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If a surplus of loanable funds exists in the loanable funds market, the real interest rate ________ and the quantity of saving ________
A) falls; increases B) rises; decreases C) falls; does not change D) rises; increases E) falls; decreases
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In the figure above, in the market for low-skilled labor, the equilibrium wage rate is
A) $16. B) $8. C) $20. D) $28.
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