Which of the Following Is Not a Reason for the Downward

question 34

Multiple Choice

Which of the following is not a reason for the downward slope of the aggregate demand curve?

• A) Real balances effect
• B) Interest-rate effect
• C) Net exports effect
• D) Government spending effect

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Definitions:

Technological Advance

A phase of innovation where new technologies significantly improve processes, goods, or services.

Manufacturing Industries

Sectors of the economy that use machinery, tools, and labor to produce goods for use or sale.

Pure Competition

A market structure characterized by a large number of small firms all producing homogeneous products and facing no barriers to entry or exit.

Utility-maximizing Consumer

A theoretical concept in economics where a consumer seeks to get the maximum satisfaction or utility from their available resources or budget.