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The Aggregate Demand Curve Is Downward Sloping Because

Question 114

Multiple Choice

The aggregate demand curve is downward sloping because


A) an increase in the price level will cause an increase in spending on goods and services.
B) at lower price levels, real wealth decreases, causing a decrease in the quantity demanded of goods and services.
C) at lower price levels, interest rates increase, causing a decrease in the quantity demanded of goods and services.
D) at lower price levels, net exports increase, causing an increase in quantity demanded of goods and services.

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