Multiple Choice
What are the effects of a decrease in the price level?
A) People hold less money, so they lend less, and the interest rate rises.
B) People hold less money, so they lend more, and the interest rate falls.
C) People hold more money, so they lend more, and the interest rate rises.
D) People hold more money, so they lend less, and the interest rate falls.
Correct Answer:
Verified
Correct Answer:
Verified
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