Which Statement Is NOT a Reason the Aggregate-Demand Curve Slopes

question 34

Multiple Choice

Which statement is NOT a reason the aggregate-demand curve slopes downward?

• A) As the price level increases, real wages decline.
• B) As the price level increases, real wealth declines.
• C) As the price level increases, the interest rate increases.
• D) As the price level increases, the exchange rate increases.

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Definitions:

IRA

An Individual Retirement Account, a savings plan that allows individuals to set aside money for retirement while offering tax advantages.

Tax Laws

Regulations and legal standards governing the collection of taxes by the government from individuals and organizations.

Preferential Treatment

The act of giving advantageous conditions or benefits to certain groups or individuals over others, often based on criteria outside of merit.

Retirement Saving

Financial savings accumulated over an individual’s working life to provide income in retirement.