The Aggregate Demand Curve Slopes Downward Because

Multiple Choice

The aggregate demand curve slopes downward because

A) when inflation is lower, the Fed will lower the interest rate and potential GDP will increase.
B) when inflation is lower, consumers want to buy more goods and services.
C) when inflation is lower, the real interest rate is higher and firms will invest less.
D) when inflation is lower, the Fed will lower the interest rate and spending will increase.
E) when prices are lower, consumers want to buy more goods and services.