The slope of the U.S.aggregate demand curve is based partly on the conclusion that as the price level rises,
A)the dollar depreciates.
B)the interest rate falls.
C)people feel less wealthy.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

As the price level rises, the real value of money holdings decreases, making people feel less wealthy, which reduces consumption and contributes to the downward slope of the aggregate demand curve.

The Slope of the U