Which Effect Best Explains the Downward Slope of the Aggregate

question 152

Multiple Choice

Which effect best explains the downward slope of the aggregate demand curve?

• A)a multiplier effect
• B)an income effect
• C)a substitution effect
• D)an interest rate effect

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Definitions:

Self-mutilation

The intentional act of harming one's own body as a way to cope with emotional pain, stress, or psychological disorders.

Limit Setting

The process of establishing boundaries or rules to manage behavior, commonly used in therapy and parenting.

Provocative

Describes actions or behaviors intended to elicit a strong reaction or emotion, often deliberately challenging or controversial.

Avoidant

A tendency to evade or escape facing unpleasant tasks, situations, or interactions out of fear or discomfort.