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The aggregate demand curve slopes downward
I. for the same reasons that an ordinary demand curve does.
II. in part because when the price level falls, the real wealth of the public falls, and this induces people to change their consumption.
III. because as the price level falls, the net export component of aggregate demand increases.
Debt-to-Equity Ratio
A gauge of a firm's financial risk, determined by dividing its overall debts by the equity of its shareholders.
Year 2
A term often used to refer to the second year of a business operation, project timeline, or financial plan.
Return on Equity
A measure of a company's profitability, indicating how much profit a company generates with the money shareholders have invested.
Year 2
Typically refers to the second year of an entity's operations, plan, or financial reporting.
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