The Aggregate Demand Curve Generally Slopes Downward and to the Right

question 14

Multiple Choice

The aggregate demand curve generally slopes downward and to the right because, for any given money supply M a higher price level P causes a ______ real money supply M/P, which ______ the interest rate and ______ spending.

• A) lower; raises; reduces
• B) higher; lowers; increases
• C) lower; lowers; increases
• D) higher; raises; reduces

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Definitions:

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