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  3. Study Set
    Principles of Macroeconomics Study Set 2
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    Exam 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    If the Price Level Falls, Then
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If the Price Level Falls, Then

Question 3

Question 3

Multiple Choice

If the price level falls, then


A) the interest rate falls and spending on goods and services falls.
B) the interest rate falls and spending on goods and services rises.
C) the interest rate rises and spending on goods and services falls.
D) the interest rate rises and spending on goods and services rises.

Correct Answer:

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