The Aggregate Demand Curve Has the Usual Downward Slope,since a Higher

question 84

Multiple Choice

The aggregate demand curve has the usual downward slope,since a higher price level reduces the real money supply,________ interest rates,and ________ the equilibrium level of aggregate output,everything else held constant.

• A)raises; lowers
• B)raises; raises
• C)lowers; lowers
• D)lowers; raises

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Definitions:

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A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.

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