There Are Several Reasons Why the Aggregate Demand Curve Is

Multiple Choice

There are several reasons why the aggregate demand curve is downward- sloping. Which of the following correctly describes one of these explanations?

A) A fall in the price level, holding foreign prices and the exchange rate constant, increases net exports.
B) A rise in the price level raises the purchasing power of wealth and increases desired consumption.
C) A rise in the price level lowers the interest rate and increases investment spending.
D) A rise in the price level raises interest rates and increases investment spending.