An aggregate demand curve slopes downwards from left to right. One reason for this is that a reduction in the average price level will lead to O A. the expectation of further price falls O B. a reduction in interest rates O C. a decline in the country's international competitiveness O D.a reduction in the real value of money balances
An aggregate demand curve slopes downwards from left to right. One reason for this is that a reduction in the average price level will lead to O A. the expectation of further price falls O B. a reduction in interest rates O C. a decline in the country's international competitiveness O D.a reduction in the real value of money balances
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:An aggregate demand curve slopes downwards from left to right. One reason for this is that a reduction in the average price level will lead to
O A. the expectation of further price falls
B. a reduction in interest rates
OC.a decline in the country's international competitiveness
O D.a reduction in the real value of money balances
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