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Which of the Following Sequences Best Explains the Negative Slope \uparrow \Rightarrow

Question 160

Multiple Choice

Which of the following sequences best explains the negative slope of the aggregate-demand curve?


A) price level \uparrow \Rightarrow demand for money \uparrow \Rightarrow equilibrium interest rate \uparrow \Rightarrow quantity of goods and services demanded \darr

B) price level \uparrow \Rightarrow demand for money \darr\Rightarrow equilibrium interest rate \uparrow \Rightarrow quantity of goods and services demanded \darr

C) price level \darr\Rightarrow demand for money \darr\Rightarrow equilibrium interest rate \uparrow \Rightarrow quantity of goods and services demanded \darr

D) price level \uparrow \Rightarrow equilibrium interest rate \uparrow \Rightarrow demand for money \uparrow \Rightarrow quantity of goods and services demanded \darr

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