Which of the Following Is a True Statement

Multiple Choice

Which of the following is a true statement?

A) Firms and resource suppliers generally find it easier to reduce prices than to raise them.
B) As the price level increases, interest rates will rise and therefore consumption and investment spending will also rise.
C) An initial increase in aggregate demand may cause a further increase in aggregate demand because higher prices mean higher incomes.
D) A decline in aggregate demand will primarily affect real output and employment if prices are inflexible downward.