Multiple Choice
Which of the following explains why the aggregate demand curve slopes downward?
A) If the price level increases,we feel poorer and therefore buy less.
B) If the price level increases,we feel richer and therefore buy more.
C) If domestic prices increase,we substitute domestic goods for imported ones.
D) If the price of a particular good increases,we substitute away from that good.
E) A decrease in the price of a particular good is like an increase in income and therefore we buy more.
Correct Answer:

Verified
Correct Answer:
Verified
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