Multiple Choice
Ben N.Jerry prefers to keep his $10 000 retirement savings buried in the backyard.After an increase in the price level,Ben reduces the amount of goods and services he wants to purchase.Ben's rationalization,that now his retirement savings won't buy as much,is consistent with which explanation of the aggregate demand curve's negative slope?
A) the real wealth effect
B) the interest rate effect
C) the inflation effect
D) the open economy effect
Correct Answer:
Verified
Correct Answer:
Verified
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