When the price level changes,which of the following variables will change and thereby cause a change in the aggregate quantity of goods and services demanded?
A)the real value of wealth
B)the interest rate
C)the value of currency in the market for foreign exchange
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the above variables are affected by changes in the price level, which in turn influence the aggregate quantity of goods and services demanded. The real value of wealth changes due to the wealth effect, the interest rate changes due to the interest rate effect, and the value of currency changes due to the exchange rate effect.

When the Price Level Changes,which of the Following Variables Will