The Negative Relationship Between the Price Level and

question 167

Multiple Choice

The negative relationship between the price level and

• A) net exports is one reason that the aggregate supply curve slopes downward.
• B) net exports is one reason that the aggregate demand curve slopes downward.
• C) imports is one reason that the aggregate supply curve slopes downward.
• D) imports is one reason that the aggregate demand curve slopes downward.

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Definitions:

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Time Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Present Value Amount

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Rate of Earnings

Measures the speed at which a company or an investment generates income relative to a certain amount of assets, capital, or equity.