The Dynamic Aggregate Demand Curve Has a Negative Slope for All

question 68

Multiple Choice

The dynamic aggregate demand curve has a negative slope for all of the following reasons except:

• A)The reduction in real wealth caused by inflation
• B)The fact that high rates of inflation are good for the stock market
• C)The redistribution that occurs as inflation has a greater impact on the poor than it does on the wealthy
• D)Higher current inflation leads policy makers to increase the real interest rate, which depresses various components of aggregate expenditures

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Definitions:

Public Purchase

The process by which government departments or entities acquire goods, services, and works from private sector companies.

Reference Groups

Groups that individuals compare themselves to for guidance in forming attitudes, beliefs, values, or behaviors.

Consumer

An individual who purchases goods and services for personal use.

Business Marketers

Professionals who specialize in promoting and selling products or services to other businesses, rather than individual consumers.