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Which of the following statements is true in the context of aggregate demand? Check all that apply. Note: points are awarded for correct answers and
Which of the following statements is true in the context of aggregate demand? Check all that apply. Note: points are awarded for correct answers and subtracted for wrong answers. A fall in the price level will reduce the demand for money, raise the interest rate, and increase consumption spending. A fall in the price level decreases the demand for money, lowers the interest rate, increases capital outflow causing a depreciation of the domestic currency, and increases net exports. ) A rise in the price level lowers real wealth and results in a higher level of consumption and investment spending. A rise in the price level increases the demand for money, lowers the interest rate, and reduces consumption spending. A rise in the price level lowers real wealth of households and results in a lower level of consumer spending
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