According to the intertemporal substitution effect, a higher price level
A. decreases the quantity of real GDP demanded.
B. lowers the costs of building new plants and equipment.
C. increases the quantity of real GDP demanded.
D. makes it less costly for people to buy houses and cars.
Answer:A
According to the intertemporal substitution effect, a higher price level
A. decreases the quantity of real GDP demanded. B. lowers the costs of building new plants and equipment. C. increases the quantity of real GDP demanded. D. makes it less costly for people to buy houses and cars.