The Most Important Reason for the Slope of the Aggregate-Demand

question 90

Multiple Choice

The most important reason for the slope of the aggregate-demand curve is that as the price level

• A)increases,interest rates increase,and investment decreases.
• B)increases,interest rates decrease,and investment increases.
• C)decreases,interest rates increase,and investment increases.
• D)decreases,interest rates decrease,and investment decreases.

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Definitions:

Unconscious Mind

A part of the mind that influences thoughts and actions without one's awareness, according to Freudian theory.

Mental Processes

The internal cognitive mechanisms that include thinking, perceiving, problem-solving, and information processing.

John Watson

A psychologist who is considered one of the founders of behaviorism, emphasizing the importance of observable behaviors in psychology.

Industrial/Organizational Psychologist

Professionals who apply psychological principles to workplace environment, organization, and personnel issues.