By Analyzing Aggregate Demand Through Its Component Parts,we Can Conclude

Multiple Choice

By analyzing aggregate demand through its component parts,we can conclude that,everything else held constant,a decline in the inflation rate causes

A) an increase in real interest rates, a decline in investment spending, and a decline in aggregate output demand.
B) a decline in real interest rates, a decrease in investment spending, and an increase in aggregate output demand.
C) a decline in real interest rates, an increase in investment spending, and an increase in aggregate output demand.