The Aggregate Demand Curve Is Downward Sloping Because

question 132

Multiple Choice

The aggregate demand curve is downward sloping because:

• A)an increase in the price level will cause an increase in spending.
• B)at lower price levels, real wealth decreases, causing a decrease in the quantities of goods and services demanded.
• C)at lower price levels, interest rates decrease, causing a decrease in the quantities of goods and services demanded.
• D)at lower price levels, exports increase, causing an increase in the quantities of goods and services demanded.
• E)increases in the price level do not affect people's real wealth.