Which of the following is not a reason for the downward slope of the aggregate demand curve?
A) Real balances effect
B) Interest-rate effect
C) Net exports effect
D) Government spending effect

Question

Quizplus · Accepted Answer

Government spending effect actually shifts the aggregate demand curve rather than causing a downward slope. The real balances effect, interest-rate effect, and net exports effect are all reasons for the downward slope of the aggregate demand curve.

Which of the Following Is Not a Reason for the Downward