Which of the Following Is Characteristic of Aggregate Demand in Canada

Multiple Choice

Which of the following is characteristic of aggregate demand in Canada?

A) The exchange-rate effect is relatively small because exports and imports are a small part of real GDP.
B) The interest-rate effect is relatively small because investment spending is not very responsive to interest rate changes.
C) The wealth effect is relatively large because money holdings are a significant portion of most households' wealth.
D) The interest rate effect is relatively large.