Which of the Following Is One Explanation as to Why

question 57

Multiple Choice

Which of the following is one explanation as to why the aggregate demand curve slopes downward?

• A)Increases in the price level lower the interest rate and decrease consumption spending.
• B)Increases in the price level lower the interest rate and decrease investment spending.
• C)Increases in the Canadian price level relative to the price level in other countries lower net exports.
• D)Increases in the price level raise real wealth and lower consumption spending.
• E)Increasing prices reduce nominal interest rates and spur additional government spending.

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Definitions:

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