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Economics
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Economics
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
Option A
B
lower prices increase the value of money holding and consumer spending increases
Option B
C
lower prices decrease the value of money holdings and consumers spending decreases
Option C
lower prices reduce money holdings increase lending interest rates fall, and investment spending increase
Correct answer
Correct answer: D
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