The negative slope of the aggregate demand curve is caused by:
a. the real balances effect, the interest rate effect, and the price level effect.
b. the real balances effect, the money supply effect, and the net exports effect.
c. the interest rate effect, the net exports effect, and the real GDP effect.
d. the real balances effect, the interest rate effect, and the net exports effect.
e. the real balances effect, the interest rate effect, and the net export effect.
d
You might also like to view...
Which of the following is TRUE?
A) APC - APS = 1 B) MPC + MPS = 1 C) 1 + APC = APS D) APC + MPS = 1
Idiosyncratic error is the error that occurs due to _____.
A. incorrect measurement of an economic variable B. unobserved factors that affect the dependent variable and change over time C. unobserved factors that affect the dependent variable and do not change over time D. correlation between the independent variables