Which of the Following Is One Explanation as to Why

question 33

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 U.S.price level relative to the price level in other countries lowers net exports.
• D)Increases in the price level raise real wealth and lowers consumption spending.

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Definitions:

Mixed Numbers

Numbers consisting of an integer and a proper fraction.

Lowest Terms

The form of a fraction when the numerator and denominator are reduced to their smallest possible numbers.

Mixed Numbers

A combination of a whole number and a fraction used to represent quantities that are greater than whole numbers but less than the next whole number.

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to their smallest values without changing the value of the fraction.