Other things the same,when the price level falls,interest rates
A)rise,which means consumers will want to spend more on homebuilding.
B)rise,which means consumers will want to spend less on homebuilding.
C)fall,which means consumers will want to spend more on homebuilding.
D)fall,which means consumers will want to spend less on homebuilding.

Question

Quizplus · Accepted Answer

When the price level falls, interest rates typically fall as well, making borrowing cheaper. This encourages consumers to spend more on homebuilding and other investments.

Other Things the Same,when the Price Level Falls,interest Rates