Consider monetary equilibrium and the monetary transmission mechanism.An exogenous rise in the price level,with no change in the supply of money,will

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An exogenous rise in the price level, with no change in the supply of money, means that the real value of money has decreased. This will lead to an increase in the demand for money, as individuals and firms need more money to purchase the same amount of goods and services. However, this will also lead to a decrease in desired aggregate expenditure, as the higher prices make goods and services relatively more expensive and less attractive to purchase. Therefore, the correct answer is B: increase the demand for money and decrease desired aggregate expenditure.

Consider Monetary Equilibrium and the Monetary Transmission Mechanism