The Aggregate Demand Curve Slopes Downward Because

question 84

Multiple Choice

The aggregate demand curve slopes downward because

• A)when inflation is lower, the Fed will lower the interest rate and potential GDP will increase.
• B)when inflation is lower, consumers want to buy more goods and services.
• C)when inflation is lower, the real interest rate is higher and firms will invest less.
• D)when inflation is lower, the Fed will lower the interest rate and spending will increase.
• E)when prices are lower, consumers want to buy more goods and services.

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