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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Monetary Policy Influences Aggregate Demand
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    Which of the Effects Listed Below Increases the Quantity of Goods
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Which of the Effects Listed Below Increases the Quantity of Goods

Question 84

Question 84

Multiple Choice

Which of the effects listed below increases the quantity of goods and services demanded when the price level falls and decreases the quantity of goods and services demanded when the price level rises?


A) the wealth effect
B) the interest-rate effect
C) the exchange-rate effect
D) All of the above are correct.

Correct Answer:

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