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All of the Following Are Reasons for the Downward-Sloping Aggregate

Question 65

Multiple Choice

All of the following are reasons for the downward-sloping aggregate demand curve except


A) as the price level decreases, the quantity demanded of real GDP decreases because goods and services are more expensive.
B) as the price level increases, the real value of household wealth declines, reducing consumption.
C) a higher price level increases the demand for money, causing an increase in the interest rate which reduces spending on investment goods and consumer durables.
D) if the price level rises in a country relative to price levels in other countries, net exports will decrease in the original country.

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