Multiple Choice
Which of the following sequences results from a decrease in the price level?
A) the money demand curve shifts leftward,the interest rate decreases,investment spending and autonomous consumption increase,the aggregate expenditure line shifts upward,and there is a rightward movement along the aggregate demand curve.
B) the money demand curve shifts rightward,the interest rate increases,investment spending and autonomous consumption increase,the aggregate expenditure line shifts downward,and there is a rightward movement along the aggregate demand curve.
C) the money demand curve shifts leftward,the interest rate decreases,investment spending and autonomous consumption increase,the aggregate expenditure line shifts upward,and there is a leftward movement along the aggregate demand curve.
D) the money demand curve shifts rightward,the interest rate decreases,investment spending and autonomous consumption increase,the aggregate expenditure line shifts upward,and there is a movement upward along the aggregate demand curve.
E) the money demand curve shifts leftward,the interest rate increases,investment spending and autonomous consumption increase,the aggregate expenditure line shifts upward,and there is a leftward movement along the aggregate demand curve.
Correct Answer:

Verified
Correct Answer:
Verified
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