In Order for the Aggregate Demand (AD) Curve to Be

question 48

Multiple Choice

In order for the aggregate demand (AD) curve to be downward-sloping,

• A)there has to be an inverse relationship between the real interest rate and real GDP and a positive relationship between inflation and the real interest rate.
• B)there has to be a positive relationship between the real interest rate and real GDP and a negative relationship between inflation and the real interest rate.
• C)there has to be an inverse relationship between the real interest rate and real GDP and an inverse relationship between inflation and the real interest rate.
• D)there has to be a positive relationship between the real interest rate and real GDP and a positive relationship between inflation and the real interest rate.
• E)there has to be an inverse relationship between the real interest rate and real GDP but there cannot be a relationship between inflation and the real interest rate.

Analyze changes in assets, liabilities, and equity through comparative balance sheets.

Interpret income statement figures and their impact on business performance.

Calculate and analyze cash flows from operating, investing, and financing activities.

Understand the effects of transactions on cash flows.

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