The Aggregate Demand Curve Is Downward Sloping Because

question 61

Multiple Choice

The aggregate demand curve is downward sloping because:

• A) an increase in the price level will cause an increase in spending.
• B) at lower price levels, real wealth decreases, causing a decrease in the quantities of goods and services demanded.
• C) at lower price levels, interest rates decrease, causing a decrease in the quantities of goods and services demanded.
• D) at lower price levels, exports increase, causing an increase in the quantities of goods and services demanded.

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Definitions:

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The portion of receivables that a company does not expect to collect, often treated as an expense in the income statement.

National Credit Card

A credit card that is widely accepted across a given nation, often issued by major banks or credit card companies.

Retailers

Businesses that sell goods or services directly to consumers.

Cash Sale

A transaction in which goods or services are exchanged for immediate payment in cash or its equivalent.