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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
  5. Question
    If the Price Level Rises,then
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If the Price Level Rises,then

Question 1

Question 1

Multiple Choice

If the price level rises,then


A) the interest rate falls and spending on goods and services falls.
B) the interest rate falls and spending on goods and services rises.
C) the interest rate rises and spending on goods and services falls.
D) the interest rate rises and spending on goods and services rises.

Correct Answer:

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