Multiple Choice
Substitution effects help explain the slope of the aggregate demand curve. One substitution effect refers to the
A) effect on investment expenditures that result from a change in interest rates produced by a change in the price level.
B) direct relationship between the interest rate and the real value of wealth.
C) change in wealth that results from a change in the interest rate.
D) inverse relationship between the interest rate and the price level.
Correct Answer:
Verified
Correct Answer:
Verified
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