Which of the following explain why the Aggregate Demand Curve slopes downward? Mark all that apply. Select 4 correct answer(s) Question 10 options: When the price level rises, the interest rate will rise, reducing Investment Spending. When the price level falls, the interest rate will fall, increasing Investment Spending. When the price level rises, the purchasing power of money declines and Consumption Spending will decline. When the price level falls, the purchasing power of money declines and Consumption Spending will decline. When the domestic price level rises, imports become relatively more expensive and Net Exports increase. When the domestic price level falls, imports become relatively more expensive and exports become less expensive, resulting in an increase in Net Exports.
Which of the following explain why the Aggregate
Question 10 options:
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When the |
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When the price level falls, the interest rate will fall, increasing Investment Spending. |
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When the price level rises, the |
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When the price level falls, the purchasing power of money declines and Consumption Spending will decline. |
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When the domestic price level rises, imports become relatively more expensive and Net Exports increase. |
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When the domestic price level falls, imports become relatively more expensive and exports become less expensive, resulting in an increase in Net Exports. |
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