A rise in the price level brings a ________ in the buying power of money that ________ consumption expenditures and causes the quantity of real GDP demanded to ________.
A) rise; decreases; decrease
B) fall; decreases; decrease
C) fall; increases; increase
D) rise; increases; increase
E) fall; decreases; increases

Question

Quizplus · Accepted Answer

A rise in the price level decreases the buying power of money, which decreases consumption expenditures and ultimately leads to a decrease in the quantity of real GDP demanded.

A Rise in the Price Level Brings a ________ in the Buying