A rise in the price level that leads to a change in the interest rate,and therefore to a change in the quantity of aggregate demand,will cause
A) an upward movement along the aggregate demand curve.
B) a downward movement along the aggregate demand curve.
C) a rightward shift of the aggregate demand curve.
D) a leftward shift of the aggregate demand curve.
E) no change in the quantity of aggregate demand.

Question

Quizplus · Accepted Answer

A rise in the price level typically leads to higher interest rates, which reduces the quantity of aggregate demand, causing an upward movement along the aggregate demand curve.

A Rise in the Price Level That Leads to a Change