The real-balance and interest-rate effects help explain why aggregate demand might shift to the
right or to the left.

Name: The real-balance and interest-rate effects help explain why aggregate demand might shift to the right or to the left.
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Question

Quizplus · Accepted Answer

The real-balance and interest-rate effects help explain why the aggregate demand curve slopes downward, not why it shifts. Shifts in aggregate demand are caused by factors such as changes in consumer confidence, fiscal policy, and foreign exchange rates.

The Real-Balance and Interest-Rate Effects Help Explain Why Aggregate Demand