Multiple Choice
The aggregate demand curve is downward sloping because:
A) an increase in the price level will cause an increase in spending.
B) at lower price levels, real wealth decreases, causing a decrease in the quantities of goods and services demanded.
C) at lower price levels, interest rates decrease, causing a decrease in the quantities of goods and services demanded.
D) at lower price levels, exports increase, causing an increase in real GDP.
Correct Answer:

Verified
Correct Answer:
Verified
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