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The Intertemporal Substitution Effect of the Price Level on Aggregate

Question 377

Multiple Choice

The intertemporal substitution effect of the price level on aggregate demand


A) explains why aggregate demand increases when the amount of money increases.
B) is the same as the real wealth effect.
C) is one reason that the aggregate demand curve has a positive slope.
D) is one reason that the aggregate demand curve has a negative slope.

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