Who will increase spending as the price level decreases?
A) Domestic consumers
B) Businesses
C) Foreigners
D) Each entity will increase their expenditures.

Question

Quizplus · Accepted Answer

As the price level decreases, all entities - domestic consumers, businesses, and foreigners - are likely to increase their spending. This is because their purchasing power increases, making goods and services more affordable.

Who Will Increase Spending as the Price Level Decreases