By Looking at Aggregate Demand Via Its Component Parts,we Can

Multiple Choice

By looking at aggregate demand via its component parts,we can conclude that the aggregate demand curve is downward sloping because

A) a lower price level,holding the nominal quantity of money constant,leads to a larger quantity of money in real terms,causes the interest rate to fall,and stimulates planned investment spending.
B) a lower price level,holding the nominal quantity of money constant,leads to a larger quantity of money in nominal terms,causes the interest rate to rise,and stimulates planned investment spending.
C) a higher price level,holding the nominal quantity of money constant,leads to a larger quantity of money in real terms,causes the interest rate to fall,and stimulates planned investment spending.
D) a higher price level,holding the nominal quantity of money constant,leads to a smaller quantity of money in real terms,causes the interest rate to fall,and stimulates planned investment spending.