Which of the following claims concerning the importance of effects that explain the slope of the U.S. ag-gregate-demand curve is correct?
A) The exchange-rate effect is relatively small because exports and imports are a small part of real GDP.
B) The interest-rate effect is relatively small because investment spending is not very responsive to interest rate changes.
C) The wealth effect is relatively large because money holdings are a significant portion of most households' wealth.
D) None of the above is correct.
Correct Answer:
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