An increase in the real interest rate leads to a(n) ________

Because of the slope of the aggregate demand curve, we can say that

A) a decrease in the price level leads to a lower level of real GDP demanded. B) an increase in the price level leads to a higher level of real GDP demanded. C) a decrease in the price level leads to a higher level of real GDP demanded. D) an increase in the price level leads to no change in the level of real GDP demanded.

Licensing and regulation of business activities by colonial governments

(a) occurred only infrequently. (b) was a common practice in early colonial times but the British eventually replaced it with a policy of laissez faire before the American Revolution. (c) was very common throughout the colonial period just as it is today. (d) is basically inconsistent with American concepts of freedom of enterprise and so has never been common practice in either colonial or modern times.