In a Fixed Exchange Rate Regime,a Reduction in the Price

Multiple Choice

In a fixed exchange rate regime,a reduction in the price level will cause which of the following?

A) a real appreciation and a leftward shift in the aggregate demand curve
B) a real appreciation and no shift in the aggregate demand curve
C) a real depreciation and a rightward shift in the aggregate demand curve
D) a real depreciation and no shift in the aggregate demand curve
E) no change in the real exchange rate, and no change in aggregate demand