If the money wealth, interest rate, and international effects reduce the quantity of aggregate demand by 3 percent when the price rises by 6 percent and the multiplier is 2, then the slope of the aggregate demand curve is:
A ) -1/2.
B ) -1.
C ) -2.
D ) -3.
_____________________________________
An increase in the price level:
A ) increases the purchasing power of money, leading to lower interest rates, which increases investment.
B ) increases the purchasing power of money, leading to higher interest rates, which decreases investment.
C ) decreases the purchasing power of money, leading to lower interest rates, which increases investment.
D ) decreases the purchasing power of money, leading to higher interest rates, which decreases investment.
____________________________________________________________________
If the money wealth, interest rate, and international effects reduce the quantity of aggregate demand by 3 percent when the price rises by 6 percent and the multiplier is 2, then the slope of the aggregate demand curve is:
A ) -1/2.
B ) -1.
C ) -2.
D ) -3.
_____________________________________
An increase in the price level:
A ) increases the purchasing power of money, leading to lower interest rates, which increases investment.
B ) increases the purchasing power of money, leading to higher interest rates, which decreases investment.
C ) decreases the purchasing power of money, leading to lower interest rates, which increases investment.
D ) decreases the purchasing power of money, leading to higher interest rates, which decreases investment.
____________________________________________________________________
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