

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. | |