The Wealth Effect Along an Aggregate-Demand Curve Stems from the Idea

Multiple Choice

The wealth effect along an aggregate-demand curve stems from the idea that a higher price level

A) increases the real value of households' money holdings.
B) decreases the real value of households' money holdings.
C) increases the real value of the domestic currency in foreign-exchange markets.
D) decreases the real value of the domestic currency in foreign-exchange markets.