All of the Following Are Reasons for the Downward-Sloping Aggregate

question 37

Multiple Choice

All of the following are reasons for the downward-sloping aggregate demand curve except

• A) as the price level decreases, the quantity demanded of real GDP decreases because goods and services are more expensive.
• B) as the price level increases, the real value of household wealth declines, reducing consumption.
• C) a higher price level increases the demand for money, causing an increase in the interest rate which reduces spending on investment goods and consumer durables.
• D) if the price level rises in a country relative to price levels in other countries, net exports will decrease in the original country.

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