When the price level falls
A)people want to hold more money.
B)the interest rate rises.
C)investment spending rises.
D)All of the above are correct.

Name: When the price level falls A)people want to hold more money. B)the interest rate rises. C)investment spending rises. D)All of the above are correct.
Brand: Quizplus
Rating: 4.7 (36 reviews)

Question

Quizplus · Accepted Answer

When the price level falls, the real value of money increases, leading to lower interest rates, which encourages more investment spending.

When the Price Level Falls