Rising inflation causes quantity demanded to decline,because ________.
A)the central bank raises the nominal interest rate by more than the increase in expected inflation
B)households and businesses are reluctant to spend when prices rise
C)higher inflation causes the IS curve to shift to the left
D)all of the above
E)none of the above

Question

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The Answer of Rising inflation causes quantity demanded to decline,because ________.
A)the central bank raises the nominal interest rate by more than the increase in expected inflation
B)households and businesses are reluctant to spend when prices rise
C)higher inflation causes the IS curve to shift to the left
D)all of the above
E)none of the above

Rising Inflation Causes Quantity Demanded to Decline,because ________