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The Intertemporal Substitution Effect of the Price Level on Aggregate

Question 380

Multiple Choice

The intertemporal substitution effect of the price level on aggregate demand


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

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