Economics (AS & A Level) · May / June 2023 · Paper 12 · Question 19
9708Aggregate Demand and Aggregate Supply analysis
Why might aggregate demand increase when a country's price level falls?
- ADomestic interest rates will tend to fall.
- BImports become more price competitive.
- CReal incomes fall.
- DThe purchasing power of savings falls.
As printed in the paper
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Correct answer: A. Domestic interest rates will tend to fall.
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