g The real-balances effect on aggregate demand suggests that a . rev: 06_12_2018 Multiple Choice lower price level will decrease the demand for money, decrease interest rates, and increase consumption and investment spending higher price level will decrease the real value of many financial assets and therefore cause an increase in spending lower price level will increase the real value of many financial assets and therefore cause an increase in spending higher price level will increase the real value of many financial assets and therefore cause an increase in spending