The Aggregate Demand Curve Slopes Downward to the Right Because

Multiple Choice

The aggregate demand curve slopes downward to the right because

A) as prices decrease,the real value of the fixed quantity of money increases and thereby stimulates consumer spending.
B) a lower price level reduces the price of domestic goods relative to foreign goods,increasing net exports (the international substitution effect) .
C) a lower price level reduces the demand for money and lowers the real interest rate,stimulating consumption and investment spending (the interest rate effect) .
D) all of the above are correct.