A)
an increase in the price level will increase the demand for money, increase interest rates, and reduce consumption and investment spending.
B)
a lower price level will decrease the real value of many financial assets and therefore reduce spending.
C)
a higher price level will increase the real value of many financial assets and therefore increase spending.
D)
a higher price level will decrease the real value of many financial assets and therefore reduce spending.
an increase in the price level will increase the demand for money, increase interest rates, and reduce consumption and investment spending.
B)
a lower price level will decrease the real value of many financial assets and therefore reduce spending.
C)
a higher price level will increase the real value of many financial assets and therefore increase spending.
D)
a higher price level will decrease the real value of many financial assets and therefore reduce spending.
ANSWER:
D)
a higher price level will decrease the real value of many financial assets and therefore reduce spending.