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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