According to the Interest Rate Effect, Aggregate Demand Slopes Downward

question 4

Multiple Choice

According to the interest rate effect, aggregate demand slopes downward (negatively) because lower prices

• A) increase money holdings, decrease lending, interest rates rise, and investment spending falls.
• B) increase the value of money holdings and consumer spending increases.
• C) decrease the value of money holdings and consumer spending decreases.
• D) reduce money holdings, increase lending, interest rates fall, and investment spending increases.

---

Definitions:

Grade Fastener

A classification system for fasteners, such as bolts and screws, indicating their material strength and durability.

Square Drive

A type of drive or connection point in tools and fasteners, notably sockets and wrenches, characterized by its square shape, providing a secure fit and transfer of torque.

Drive Lug

A mechanical feature, often a protrusion or pin, designed to engage with another component to transmit motion or force.

Standard Ratchets

Mechanical devices used to allow continuous rotary motion in one direction while preventing motion in the opposite direction, usually adhering to common sizes and specifications.