A decrease in the price level will have which of the following effects?
A)The real value of dollar-denominated assets will rise.
B)The aggregate expenditure line will shift downward.
C)The equilibrium level of output demanded will fall.
D)There will be upward movement along a particular aggregate demand curve.
E)The aggregate demand curve will shift leftward.

Question

Quizplus · Accepted Answer

A decrease in the price level increases the real value of dollar-denominated assets, as the purchasing power of money increases, making consumers feel wealthier and potentially increasing consumption.

A Decrease in the Price Level Will Have Which of the Following