Consider monetary equilibrium and the monetary transmission mechanism. A decrease in the price level, with no change in the supply of money, will
A) increase the demand for money and decrease aggregate expenditure.
B) decrease the demand for money and decrease aggregate demand.
C) increase the demand for money and increase aggregate expenditure.
D) decrease the demand for money and leave aggregate demand unchanged.
E) decrease the demand for money and increase aggregate demand.
Correct Answer:
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