A decrease in the price level in an economy will _____.
A)increase the real value of dollar-denominated assets
B)shift the aggregate expenditure line downward
C)decrease the equilibrium level of output demanded
D)cause an upward movement along the aggregate demand curve
E)shift the aggregate demand curve leftward

Question

Quizplus · Accepted Answer

A decrease in the price level increases the purchasing power of the currency, leading to an increase in the real value of dollar-denominated assets.

A Decrease in the Price Level in an Economy Will