Which of the following explains the downward slope of the aggregate demand curve?
a. disposable income remains unchanged when prices rise.
b. higher domestic prices encourage exports and discourage imports.
c. higher prices reduce the household’s real wealth.
d. All of these.
c. higher prices reduce the household’s real wealth.
Economics
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The Fed can influence:
A. the budget of the federal government. B. the household savings rate. C. U.S. tax rates. D. the U.S. money supply.
Economics
As a result of the recent financial crisis, some analysts believed that the MPC in the U.S. declined. If this is true, the value of the multiplier is now
a. smaller. b. larger. c. the same. d. magnified to a larger amount.
Economics