Which of the following cause the aggregate demand curve to slope downward and to the right?
A) the prices of key goods
B) the interest rate effect
C) military expenditures of the government
D) the demand-shock effect

Question

Quizplus · Accepted Answer

The interest rate effect causes the aggregate demand curve to slope downward and to the right because as the price level increases, the demand for money increases, leading to higher interest rates, which in turn reduces investment and consumption spending.

Which of the Following Cause the Aggregate Demand Curve to Slope