The Wealth Effect,interest Rate Effect,and International Trade Effect All Explain

question 91

Multiple Choice

The wealth effect,interest rate effect,and international trade effect all explain why the

• A) aggregate demand (AD)curve has a negative slope.
• B) aggregate demand (AD)curve has a positive slope.
• C) aggregate supply (AS)curve has a positive slope.
• D) aggregate supply (AS)curve has a negative slope.
• E) price level and real gross domestic product (GDP)are unrelated.

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Definitions:

Interest

The charge for borrowing money, typically expressed as an annual percentage of the principal amount.

Quarter

A three-month period on the financial calendar that companies use to report their earnings and performance.

Account

A document detailing all the transactions related to a particular element within the accounting equation.

Ordinary Annuity

Invariable payments issued at the terminal of consecutive intervals over an exact length of existence.