By analyzing aggregate demand through its component parts, we can conc

By analyzing aggregate demand through its component parts, we can conclude that, everything else held constant, a decline in the inflation rate causes

A) an increase in real interest rates, an increase in investment spending, and a decline in aggregate output demand.
B) a decline in real interest rates, a decrease in investment spending, and an increase in aggregate output demand.
C) a decline in real interest rates, an increase in investment spending, and an increase in aggregate output demand.
D) an increase in real interest rates, a decline in investment spending, and a decline in aggregate output demand.

ANSWER

C