Which Statement Best Explains the Downward Slope of the Aggregate-Demand

question 133

Multiple Choice

Which statement best explains the downward slope of the aggregate-demand curve?

• A) As the Canadian price level increases, the dollar depreciates and people buy more imports.
• B) As the Canadian price level increases, the interest rate falls and firms invest less.
• C) As the Canadian price level increases, people feel less wealthy and buy less goods and services.
• D) As the Canadian price level increases, people buy more substitute goods.

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Definitions:

National Average

The arithmetic mean of a set of values or measurements taken across a nation, often used to describe the general state of a measurable factor like income, education level, or health outcomes.

Margin of Error

The range of values above and below the sample statistic in a confidence interval, often used to indicate the precision of an estimate.

Sampling Variability

The variation of sample statistics from sample to sample, due to the random selection of samples from the population.

Nonresponse Bias

Bias that occurs in survey results when individuals who do not participate differ significantly from those who do in ways that affect the survey's outcome.