All of the Following Explain the Downward Slope of the Aggregate

question 162

Multiple Choice

All of the following explain the downward slope of the aggregate demand curve EXCEPT

• A) changes in the stock of real wealth held by individuals.
• B) the effect of changing interest rates on the quantity demanded of interest-rate-sensitive goods.
• C) the availability of foreign substitute goods.
• D) the presence of unused production capacity and unemployment.

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Definitions:

Postbox Rule

The Postbox Rule, also known as the mailbox rule, is a legal principle that determines the moment at which an offer is considered accepted, typically the moment the acceptance is sent.

Binding Contract

A legal agreement between two or more parties that is enforceable by law.

Entores Ltd.

A landmark case in contract law that established the principle that an acceptance of an offer becomes effective when communicated.

Telex

A communication network system used to send text messages through a network of teleprinters, historically significant before the advent of modern digital communications.