There are several reasons why the aggregate demand curve is downward- sloping. Which of the following correctly describes one of these explanations?
A) A fall in the price level, holding foreign prices and the exchange rate constant, increases net exports.
B) A rise in the price level raises the purchasing power of wealth and increases desired consumption.
C) A rise in the price level lowers the interest rate and increases investment spending.
D) A rise in the price level raises interest rates and increases investment spending.
Correct Answer:
Verified
Q41: Stagflation is the combination of
A)deflation with increasing
Q42: If the money price of a resource
Q43: Q44: Which of the following changes would NOT Q45: In short- run macroeconomic equilibrium, Q47: Suppose the Australian exchange rate falls from Q48: Business cycles are the result of Q49: Economic growth is BEST defined as Q50: Full- employment equilibrium occurs Q51: 
A)real GDP is
A)regular shifts
A)rightward shifts
A)when potential GDP exceeds
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