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Question 29 According to the monetary transmission mechanism, an exogenous fall in the price level will lead Not yet to... answered Marked out of O a. An excess demand for money resulting in a rise in the rate of interest, which shifts 1.00 the AE function downward and decreases the equilibrium level of income. O b. A movement to the left along the AE function. Flag question O c. People being able to buy more with their increased wealth, which will shift the AE function downward and decrease the equilibrium level of income. O d. A movement to the right along the AE function. O e. An excess supply of money resulting in a fall in the rate of interest, which shifts the AE function upward and increases the equilibrium level of income. Previous page mer