Which of the following is one explanation as to why the aggregate demand curve slopes downward?
A) Decreases in the price level raise the interest rate and increase consumption spending.
B) Decreases in the price level raise the interest rate and increase investment spending.
C) Decreases in the Canada price level relative to the price level in other countries lower net exports.
D) Decreases in the price level raise real wealth and increase consumption spending.
E) Decreases in the price level raise the value of the multiplier.
Correct Answer:
Verified
Q1: An increase in the price level will
A)shift
Q2: Because of the slope of the aggregate
Q4: Deflation will
A)increase aggregate demand.
B)increase the quantity of
Q5: Canadian National Railways (CN)plays such a large
Q6: Higher personal income taxes
A)increase aggregate demand.
B)increase disposable
Q7: The "interest rate effect" can be described
Q8: The basic aggregate demand and aggregate supply
Q9: Spending on the peace keeping missions is
Q10: The international trade effect states that
A)an increase
Q11: If the Canadian dollar decreases in value
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents