Part of the Explanation for Why the Aggregate-Demand Curve Slopes

question 111

Multiple Choice

Part of the explanation for why the aggregate-demand curve slopes downward is that a decrease in the price level

• A)decreases the real value of money.
• B)increases the real value of the dollar in foreign exchange markets.
• C)decreases the interest rate.
• D)All of the above are correct.

---

Definitions:

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing vehicle for employees and the self-employed in Canada, offering tax benefits.

Maturity Value

The amount of money an investment will grow to over a period of time at a specified interest rate.

Interest Rate

The percentage of a loan that is added on as interest for the borrower, usually stated as an annual rate.

Economic Value

A measure of the benefit provided by a good or service to an economic agent.