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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