MCQOPTIONS
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| 1. |
According to the interest rate effect aggregate demand slopes downward (negatively) because ? |
| A. | lower prices increase money holdings decrease lending interest rates rise, and investment spending falls |
| B. | lower prices increase the value of money holding and consumer spending increases |
| C. | lower prices decrease the value of money holdings and consumers spending decreases |
| D. | lower prices reduce money holdings increase lending interest rates fall, and investment spending increase |
| Answer» E. | |