Which of the Following Partly Explains Why the Aggregate Demand

question 116

Multiple Choice

Which of the following partly explains why the aggregate demand curve is negatively sloped?

• A) When the price of cars manufactured in the United States increases, people buy more cars manufactured abroad.
• B) When the price of cars manufactured abroad increases, people buy fewer cars manufactured in the United States.
• C) When the interest rate increases, people borrow more money.
• D) When the interest rate decreases, people borrow less money.

---

Definitions:

Increased

Refers to a situation where there has been a rise in quantity, value, or size of a particular item or variable.

Declined

A term used when an offer, proposal, or transaction has been refused or not accepted.

Ratio Analysis

The method of evaluating various financial metrics in a company’s financial statements to assess its performance and financial health.

Size Differences

Variations in the scale or magnitude of entities, often impacting operations, strategies, or market positioning.