The wealth effect, interest-rate effect, and exchange-rate effect all help explain why the aggregate demand curve is downward sloping. Phyllis, a fellow student in your AP Macro class, suggests that the substitution effect that you learned about in Unit 1 also explains why aggregate demand curve is downward sloping. She reasons that since it explains why a market demand curve is downward sloping, it must also be valid for aggregate demand. Explain why Phyllis is wrong.

Explanation:

The aggregate demand curve is downward sloping. It implies price levels are falling and the quantity of output will increase as well as the domestic income. The theories that can explain why the aggregate demand curve is downward sloping: the Pigou's wealth effect, the Keynes's interest-rate effect, and the and Mundell-Fleming's exchange-rate effect.

answer: the net deposit amount   (option c)

in order to fill in the deposit slip, michael needs to fill in the amount that he wants to deposit in the bank. without the net deposit amount, he will not be able to deposit the money because it is mandatory for him to mention it, as the bank needs to maintain a record to avoid any inconveniences for the bank and michael in the future.

the bank officer checks and verifies the amount received against the amount written on the deposit slip to process the slip.