Other things the same,a decrease in the price level makes consumers feel
A)less wealthy,so the quantity of goods and services demanded falls.
B)less wealthy,so the quantity of goods and services demanded rises.
C)more wealthy,so the quantity of goods and services demanded rises.
D)more wealthy,so the quantity of goods and services demanded falls.

Question

Quizplus · Accepted Answer

A decrease in the price level increases the real value of money, making consumers feel more wealthy, which typically leads to an increase in the quantity of goods and services demanded.

Other Things the Same,a Decrease in the Price Level Makes