Which of the Following Sequences Best Explains the Negative Slope

question 57

Multiple Choice

Which of the following sequences best explains the negative slope of the aggregate-demand curve?

• A)price level ↑ ⇒ demand for money ↑ ⇒ equilibrium interest rate ↑ ⇒ quantity of goods and services demanded ↓
• B)price level ↑ ⇒ demand for money ↓ ⇒ equilibrium interest rate ↑ ⇒ quantity of goods and services demanded ↓
• C)price level ↓ ⇒ demand for money ↓ ⇒ equilibrium interest rate ↑ ⇒ quantity of goods and services demanded ↓
• D)price level ↑ ⇒ equilibrium interest rate ↑ ⇒ demand for money ↑ ⇒ quantity of goods and services demanded ↓

---

Definitions:

Present Value

Today's valuation of a future money sum or sequence of cash payments, given a specific rate of return.

Received

Refers to the act of obtaining or taking possession of something, often used in financial transactions.

Graduation

The process of receiving or conferring an academic degree or the ceremony that is sometimes associated, where students become graduates.

Invest

The act of allocating resources, usually money, in the expectation of generating an income or profit.