Which of the Following Is One Explanation as to Why

question 161

Multiple Choice

Which of the following is one explanation as to why the aggregate demand curve slopes downward?

• A)Decreases in the price level raise the interest rate and increase consumption spending.
• B)Decreases in the price level raise the interest rate and increase investment spending.
• C)Decreases in the U.S.price level relative to the price level in other countries lower net exports.
• D)Decreases in the price level raise real wealth and increase consumption spending.

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Definitions:

Percentage

A fraction or ratio expressed as a part of 100, used to compare quantities or express proportions.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, including coronary artery disease, hypertension, and stroke.

Weight Gain

The increase in body weight over a period of time, which can result from a variety of factors including diet, exercise, and underlying health conditions.

Early Adulthood

A stage of human development that occurs roughly between the ages of 18 to 25, marked by increased independence and responsibility.