Which statement best characterizes why an aggregate demand curve slopes downward?
A) because a decrease in the price level decreases the real value of household wealth
B) because a decrease in the domestic price level increases imports
C) because an increase in the price level leads to a decrease in demand for money, which decreases interest rates
D) because a decrease in the domestic price level increases exports

Question

Which statement best characterizes why an aggregate demand curve slopes downward?  
A) because a decrease in the price level decreases the real value of household wealth 
B) because a decrease in the domestic price level increases imports 
C) because an increase in the price level leads to a decrease in demand for money, which decreases interest rates 
D) because a decrease in the domestic price level increases exports

Quizplus · Accepted Answer

The Answer of Which statement best characterizes why an aggregate demand curve slopes downward?  
A) because a decrease in the price level decreases the real value of household wealth 
B) because a decrease in the domestic price level increases imports 
C) because an increase in the price level leads to a decrease in demand for money, which decreases interest rates 
D) because a decrease in the domestic price level increases exports

Which Statement Best Characterizes Why an Aggregate Demand Curve Slopes