An expected decline in the prices of consumer goods will:
A)decrease aggregate demand.
B)increase the quantity of real domestic output demanded.
C)increase aggregate demand.
D)decrease the quantity of real domestic output demanded.

Question

Quizplus · Accepted Answer

An expected decline in the prices of consumer goods will increase the quantity of real domestic output demanded because consumers will be able to buy more goods and services with the same amount of money.

An Expected Decline in the Prices of Consumer Goods Will