Suppose a Country Has No Trade with Other Countries and People

Multiple Choice

Suppose a country has no trade with other countries and people can borrow as much money as they want at the current interest rate.A decrease in the price level will generate

A) an increase in quantity demanded because of the real-balance effect.
B) an increase in quantity demanded because of the open-economy effect and the indirect effect.
C) an increase in quantity demanded because the real-balance effect will be stronger than the indirect effect and the open-economy effect.
D) an increase in quantity demanded because the indirect effect will be stronger than the real-balance effect.