In the short run,a rise in the price level brings a ________ in the real interest rate that ________ investment,bringing ________ in the quantity of real GDP demanded.
A)rise;decreases;a decrease
B)fall;decreases;a decrease
C)fall;increases;an increase
D)rise;increases;an increase
E)rise;decreases;an increase

Question

Quizplus · Accepted Answer

A rise in the price level leads to a rise in the real interest rate, which decreases investment, resulting in a decrease in the quantity of real GDP demanded.

In the Short Run,a Rise in the Price Level Brings