Which of the Following Is One Explanation as to Why

Multiple Choice

Which of the following is one explanation 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 the Canadian price level relative to the price level in other countries lower net exports.
D) Increases in the price level raise real wealth and lower consumption spending.
E) Increasing prices reduce nominal interest rates and spur additional government spending.