Which Statement Best Characterizes Why an Aggregate Demand Curve Slopes

question 61

Multiple Choice

Which statement best characterizes why an aggregate demand curve slopes downward?  

• A) because a decrease in the price level decreases the real value of household wealth 
• B) because a decrease in the domestic price level increases imports 
• C) because an increase in the price level leads to a decrease in demand for money, which decreases interest rates 
• D) because a decrease in the domestic price level increases exports

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Definitions:

Commerce Clause

A provision in the U.S. Constitution granting Congress the power to regulate trade between states and with foreign nations.

Interstate Commerce

Commercial transactions or movement of goods and services across state borders, regulated by federal law in the United States.

Judicial Review

The power of courts to assess the constitutionality of laws or government actions.

First Amendment

An amendment to the United States Constitution that protects freedoms concerning religion, expression, assembly, and the right to petition.