As the General Price Level in an Economy Rises, the Aggregate

Multiple Choice

As the general price level in an economy rises, the aggregate quantity demanded of goods and services falls because

A) the prices of domestic goods have risen relative to foreign goods, causing exports to fall and imports to rise.
B) higher interest rates caused by an increase in the demand for money balances causes a reduction in current investment and consumption.
C) the value of money will fall, reducing the real wealth and, thus, the consumption of persons holding money balances.
D) all of the above are correct.