The aggregate demand curve is downward sloping because a higher inflation rate leads the central bank to raise ________ interest rates, thereby ________ the level of equilibrium aggregate output., everything else held constant

If the quantity of bank reserves held at the Fed increases, ________

A) the real interest rate increases B) bank deposits decrease C) the number of loans issued by banks decrease D) inflation increases

If the demand for a product decreases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase

Indicate whether the statement is true or false