One explanation for the negative slope of the aggregate demand curve is that
A)as prices rise,nominal income falls and so does the demand for real goods and services
B)falling prices make people feel poorer and reduce spending
C)as prices rise,government spends less to drive the price level back down
D)businesses increase spending when inflation is high and rising
E)as prices rise,domestic goods become more expensive relative to foreign goods,which reduces exports

Question

Quizplus · Accepted Answer

As prices rise, domestic goods become more expensive relative to foreign goods, leading to a decrease in exports, which contributes to the negative slope of the aggregate demand curve.

One Explanation for the Negative Slope of the Aggregate Demand