When the price level falls,people want to
A)hold more money and the quantity of aggregate goods and services demanded increases.
B)hold more money and the quantity of aggregate goods and services demanded decreases.
C)hold less money and the quantity of aggregate goods and services demanded increases.
D)hold less money and the quantity of aggregate goods and services demanded decreases.

Question

Quizplus · Accepted Answer

When the price level falls, people need less money for transactions, so they hold less money. This increases their purchasing power, leading to an increase in the quantity of aggregate goods and services demanded.

When the Price Level Falls,people Want to