By Looking at Aggregate Demand Via Its Component Parts,we Can

question 17

Multiple Choice

By looking at aggregate demand via its component parts,we can conclude that the aggregate demand curve is downward sloping because

• A)a lower inflation rate causes the real interest rate to fall,and stimulates planned investment spending.
• B)a lower inflation rate causes the real interest rate to rise,and stimulates planned investment spending.
• C)a higher inflation rate causes the real interest rate to fall,and stimulates planned investment spending.
• D)a higher inflation rate causes the real interest rate to rise,and stimulates planned investment spending.

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