For the United States,the most important reason for the downward slope of the aggregate demand curve is the interest-rate effect.

Question

Quizplus · Accepted Answer

The interest-rate effect is one of the three main reasons for the downward slope of the aggregate demand curve, along with the wealth effect and the exchange rate effect. However, it is generally considered the most important reason for the United States, as changes in interest rates have a significant impact on consumer borrowing, business investment, and overall economic activity.

For the United States,the Most Important Reason for the Downward