About an increase in aggregate demand

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Reference no: EM13995954

Which of the following statements about an increase in aggregate demand is false?

A. An increase in aggregate demand can be caused by a decrease in other countries’ interest rates.

B. An increase in aggregate demand can be the result of another country’s central bank selling large quantities of their government ’s bonds.

C. An increase in aggregate demand will result in no change in the price level in the Keynesian model.

D. The increase in aggregate demand resulting from an open market operation does not depend on the slope of the aggregate supply curve.

E. An increase in aggregate demand will have no effect on GDP in the classical model.

Reference no: EM13995954

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