Which of the Following Is an Explanation for the Negative

question 34

Multiple Choice

Which of the following is an explanation for the negative slope of the aggregate demand curve?  

• A) because as prices rise nominal income falls and so does the demand for real goods and services 
• B) because as prices rise government spends less to drive the price level back down 
• C) because businesses increase spending when inflation is high and rising 
• D) because as prices rise domestic goods become more expensive relative to foreign goods, which reduces exports

---

Definitions:

Sodium Hydroxide

A highly caustic metallic base and alkali salt also known as lye and caustic soda, used in various chemical manufacturing processes.

Organic Product

A chemical compound that primarily contains carbon atoms, typically synthesized in a laboratory or isolated from living organisms.

Aldol Product

A compound produced by an aldol condensation reaction, typically involving the formation of a β-hydroxy ketone or aldehyde.

4-methylpentanal

An organic compound, specifically an aldehyde, with the chemical formula C6H12O, characterized by a methyl group attached to the fifth carbon of a pentanal chain.