Which of the effects listed below increases the quantity of goods and services demanded when the price level falls and decreases the quantity of goods and services demanded when the price level rises?
A)the wealth effect
B)the interest-rate effect
C)the exchange-rate effect
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the effects listed (wealth effect, interest-rate effect, and exchange-rate effect) contribute to increasing the quantity of goods and services demanded when the price level falls and decreasing it when the price level rises.

Which of the Effects Listed Below Increases the Quantity of Goods