True or False:
1. An increase in the price level causes the quantity of RGDP demanded to fall.
2. The real wealth effect reflects the fact that the real (adjusted for inflation) value of any asset of fixed dollar value, such as cash, falls as the price level increases.
3. A lower price level, other things being equal, will lead to increased real wealth and an increase in the quantity of RGDP demanded.
4. At a higher price level, interest rates will fall, other things being equal.
5. If the price level fell, interest rates would fall, which would trigger greater investment and consumer durable spending.
6. A lower price level, other things being equal, would decrease the interest rate and increase both the level of investment and the quantity of RGDP demanded.
7. If domestic prices of goods and services fall relative to foreign prices, more domestic products will be bought, increasing RGDP demanded.
8. An increased price level will tend to increase the demand for domestic goods and increase RGDP demanded.