1 answer

Other things the same, as the price level falls, which of the following increases? a. lending...

Question:

Other things the same, as the price level falls, which of the following increases? a. lending and investment spending b. lend

Other things the same, as the price level falls, which of the following increases? a. lending and investment spending b. lending, but not investment spending • C. investment spending, but not lending d. neither investment spending nor lending

Answers

Ans: (a) Lending and investment spending

As the price level falls, the demand increases and therefore lending and investment spending increases.

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