Multiple Choice
What is the main reason the aggregate-demand curve slopes downward?
A) As the price level increases, money demand increases, interest rates increase, and investment decreases.
B) As the price level increases, money demand increases, interest rates decrease, and investment increases.
C) As the price level decreases, money demand increases, interest rates increase, and investment increases.
D) As the price level decreases, money demand increases, interest rates decrease, and investment decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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