The aggregate quantity of goods and services demanded changes as the price level falls because
A)real wealth falls,interest rates rise,and the dollar appreciates.
B)real wealth falls,interest rates rise,and the dollar depreciates.
C)real wealth rises,interest rates fall,and the dollar appreciates.
D)real wealth rises,interest rates fall,and the dollar depreciates.

Question

Quizplus · Accepted Answer

As the price level falls, real wealth increases because consumers can buy more with the same amount of money, interest rates tend to fall as there is less pressure on money demand, and the dollar depreciates, making exports cheaper and imports more expensive, thus increasing aggregate demand.

The Aggregate Quantity of Goods and Services Demanded Changes as the Price