Which Statement Partly Explains Why the Aggregate Demand Curve Is

question 118

Multiple Choice

Which statement partly explains why the aggregate demand curve is negatively sloped?

• A) When the price of cars manufactured in the United States increases, people buy more cars manufactured abroad.
• B) When the price of cars manufactured abroad increases, people buy fewer cars manufactured in the United States.
• C) When the interest rate increases, people borrow more money.
• D) When the interest rate decreases, people borrow less money.

---

Definitions:

Color Constancy

The psychological feature that allows the human brain to perceive colors consistently under varying lighting conditions.

Light Waves

Electromagnetic waves that are visible to the human eye, responsible for the phenomenon of light.

Perceived Color

refers to the color an observer sees in various conditions, which can differ from the physical color due to lighting and context.

Depth Cue

Visual information that helps perceive the distance or three-dimensional characteristics of an object, scene, or spatial layout.