Aggregate Demand ________ If the Expected Inflation Rate Increases Because

Multiple Choice

Aggregate demand ________ if the expected inflation rate increases because ________.

A) increases;people expect to receive cost of living raises as the inflation begins
B) decreases;people wait for the exchange rates to change before making purchases
C) does not change;inflation does not affect the aggregate demand curve
D) increases;people want to make purchases now before the price of goods and services begin to increase
E) decreases;people want to wait for the price of goods and services begin to decrease