Multiple Choice
Which of the following partly explains why the aggregate demand curve is negatively sloped?
A) When the price of cars manufactured in the United States increases, people buy more cars manufactured abroad.
B) When the price of cars manufactured abroad increases, people buy fewer cars manufactured in the United States.
C) When the interest rate increases, people borrow more money.
D) When the interest rate decreases, people borrow less money.
Correct Answer:
Verified
Correct Answer:
Verified
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