Multiple Choice
Which of the following factors causes the aggregate demand curve to slope downward and to the right?
A) The substitution effect
B) The income effect
C) The open economy effect
D) The profit motive
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q125: An increase in investment spending by firms
Q126: An increase in the foreign exchange value
Q127: In the circular flow model, business sell
Q128: In product markets, households are the sellers
Q129: Along a given aggregate demand curve, _
Q131: The two reasons for the downward slope
Q132: Aggregate demand shows the relationship between the
Q133: In factor markets, households are the sellers
Q134: The open economy effect explains the upward
Q135: How are the price level and the