The Intertemporal Substitution Effect of the Price Level on Aggregate

question 102

Multiple Choice

The intertemporal substitution effect of the price level on aggregate demand

• A) is one reason that the aggregate demand curve has a positive slope.
• B) is one reason that the aggregate demand curve has a negative slope.
• C) explains why aggregate demand increases when the amount of money increases.
• D) is the same as the real wealth effect.

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