In deriving the aggregate demand curve a ________ in the price level leads to ________ in the real money supply because the nominal quantity of dollars can purchase ________ goods and services.
A)decline; an increase; more
B)decline; a decrease; more
C)rise; an increase; fewer
D)rise; a decrease; more

Question

Quizplus · Accepted Answer

A decline in the price level increases the real money supply because the same nominal amount of money can now purchase more goods and services.

In Deriving the Aggregate Demand Curve a ________ in the Price