Multiple Choice
Which of the following best characterizes the aggregate demand curve?
A) It slopes downward because higher prices cause the exchange rate to depreciate.
B) It slopes downward because higher prices cause real wealth to decrease and interest rates to increase.
C) It slopes upward because higher prices cause people to increase their production.
D) It slopes upward because higher prices cause real wealth to increase and interest rates to decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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