A Reduction in the Quantity Demanded of Interest-Rate-Sensitive Goods as a Result

Multiple Choice

A reduction in the quantity demanded of interest-rate-sensitive goods as a result of an increase in the price level,if other factors are held constant,is known as

A) the interest rate effect.
B) the real-balance effect.
C) the open-economy effect.an outward shift of the aggregate demand curve.
D) the open-money balance effect.