The Interest Rate Effect Suggests That the Negative Slope of the Aggregate

Multiple Choice

The interest rate effect suggests that the negative slope of the aggregate demand curve results, at least in part, because changes in the price level affect:

A) the level of taxes charged by the state.
B) the holdings of money by households and firms.
C) the real purchasing power of assets.
D) the level of income.
E) the quality of goods and services.