What are the answer and explanation for this question Which

What are the answer and explanation for this question?

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.

Solution

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

Because it will lead ot fall in purchasing power of the citizens of that country. It will lead to fall in exports of our country if we have trade relations with that country. With decrease in exports, AD will decrease and not increase.