Which of the following would cause a downward movement along the aggregate demand curve?
A) A rise in the price level makes U.S.goods relatively more expensive than foreign goods.
B) The value of real wealth rises.
C) There is a decline in the expected price level.
D) A fall in the price level increases savings and lowers interest rates.
E) The value of the dollar decreases.

Question

Quizplus · Accepted Answer

A fall in the price level increases savings and lowers interest rates, which leads to an increase in spending and investment, causing a downward movement along the aggregate demand curve. The other options would cause an upward movement along the curve.

Which of the Following Would Cause a Downward Movement Along