When the price level falls
A)the interest rate rises,so the quantity of goods and services demand rises.
B)the interest rate rises,so the quantity of goods and services demand falls.
C)the interest rate falls,so the quantity of goods and services demand rises.
D)the interest rate falls,so the quantity of goods and services demand falls.

Question

Quizplus · Accepted Answer

When the price level falls, interest rates will fall as well. This results in an increase in borrowing and spending, which leads to an increase in the quantity of goods and services demanded.

When the Price Level Falls