Which of the following is NOT a reason for the negative relationship between the average price level and the total amount of goods that are purchased in an economy?
A) wealth effect
B) government purchase effect
C) net export effect
D) interest rate effect

Question

Quizplus · Accepted Answer

The wealth effect, net export effect, and interest rate effect are all reasons for the negative relationship between the average price level and the total amount of goods purchased in an economy. The government purchase effect is not a reason for this relationship; it does not directly explain how changes in the price level affect the total amount of goods purchased through changes in purchasing power, interest rates, or international competitiveness.

Which of the Following Is NOT a Reason for the Negative