A decrease in the price level will have which of the following effects?
A)The real value of dollar-denominated assets will fall.
B)The aggregate expenditure line will shift upward.
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 rightward.

Question

Quizplus · Accepted Answer

A decrease in the price level increases the real value of money, leading to higher consumption and investment, which shifts the aggregate expenditure line upward.

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