The Keynesian analysis of
aggregate demand indicates that a
decline in the price level causes:

Select one:
a. an increase in the real money
supply, a decline in interest rates,
an increase in investment
spending, and an increase in
aggregate output demanded.

b. a decline in the real money
supply an increase in interest
rates, a decline in investment
spending, and a decline in
aggregate output demanded.

c. a decline in the real money
supply, a decline in interest rates,
an increase in investment
spending, and an increase in
aggregate output demanded

d. an increase in the real money
supply, an increase in interest
rates, a decline in investment
spending and a decline in aggregate output demanded

= an increase in the real money
supply, a decline in interest rates,
an increase in investment
spending, and an increase in
aggregate output demanded.

The Keynesian analysis indicates that the fall in price level causes an increase in the real money supply, a decline in interest rates, an increase in investment spending, and an increase in aggregate output demanded.

What is an aggregate demand?

This refers to the total amount of demand of all goods and services produced in an economy.

The Keynes's theory asserts that the aggregate demand helps in measurement of spending by households, businesses, government etc

However, the analysis depicts that an increase in the real money supply, a decline in interest rates, an increase in investment spending, and an increase in aggregate output demanded.

Therefore, the Option A is correct.