Why,in Part,does the Interest Rate Effect Suggest That the Aggregate

question 36

Multiple Choice

Why,in part,does the interest rate effect suggest that the aggregate demand curve has a negative slope?

• A)Changes in the price level affect the level of income.
• B)Changes in the price level affect the demand for money.
• C)Changes in the price level affect domestic purchases of foreign goods.
• D)Changes in the price level affect the real purchasing power of assets.

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