Which Statement Best Explains the Downward Slope of the Aggregate-Demand

question 133

Multiple Choice

Which statement best explains the downward slope of the aggregate-demand curve?

• A) As the Canadian price level increases, the dollar depreciates and people buy more imports.
• B) As the Canadian price level increases, the interest rate falls and firms invest less.
• C) As the Canadian price level increases, people feel less wealthy and buy less goods and services.
• D) As the Canadian price level increases, people buy more substitute goods.

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Definitions:

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