An increase in the price level might cause:
A. a decrease in the quantity of aggregate demand because of the substitution effect.
B. a decrease in the quantity of aggregate demand because of the interest rate effect.
C. an increase in the quantity of aggregate demand because of the multiplier effect.
D. an increase in the quantity of aggregate demand because of the money wealth effect.
Answer: B
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Refer to the scenario above. If Ron has the right to listen to music at night, how much does his neighbor need to pay him to stop playing music?
A) Any amount above $5,000 B) Any amount below $3,000 C) Any amount between $3,000 and $5,000 D) Any amount between $5,000 and $8,000
According to the above table, the marginal factor cost of the seventh worker is
A) $24.00. B) $126.00. C) $42.00. D) $168.00.