Multiple Choice
Which of the following is one of the explanations as to why the aggregate demand curve slopes downward?
A) Increases in the price level lower the interest rate and decrease consumption spending.
B) Increases in the price level lower the interest rate and decrease investment spending.
C) Increases in Australia's price level relative to the price level in other countries lowers net exports.
D) Increases in the price level raise real wealth and lowers consumption spending.
Correct Answer:
Verified
Correct Answer:
Verified
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