Which Statement Best Characterizes the Aggregate-Demand Curve

question 140

Multiple Choice

Which statement best characterizes the aggregate-demand curve?

• A) It slopes downward because higher prices cause the exchange rate to depreciate.
• B) It slopes downward because higher prices cause real wealth to decrease and interest rates to increase.
• C) It slopes upward because higher prices cause people to increase their production.
• D) It slopes upward because higher prices cause real wealth to increase and interest rates to decrease.

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Definitions:

Goods Imports

The action or process of bringing goods and services from foreign countries into a domestic market for consumption or use.

Exports of Services

Economic transactions where domestic service providers offer their services to entities in foreign countries.

Exchange Rates

The price at which one currency can be exchanged for another in the foreign exchange market.

Swiss Francs

The currency of Switzerland, known for its stability and often considered a "safe-haven" currency in times of economic uncertainty.