When Deriving the Aggregate Demand (AD) Curve from the Aggregate

question 191

Multiple Choice

When deriving the aggregate demand (AD) curve from the aggregate expenditures model, an increase in U.S. product prices would cause an increase in

• A) the value of household wealth and lower consumption expenditures.
• B) interest rates and lower investment expenditures.
• C) exports and imports.
• D) U.S. resource prices and an increase in aggregate supply.

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Definitions:

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