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Business, 05.05.2020 21:22 reagriffis24

Match the cause for the negatively sloped aggregate demand curve with the correct term from the options.

1. As prices rise, the cost for businesses to finance new equipment increases, causing a drop in quantity demanded of real GDP.

2.The purchasing power of money held in savings accounts falls as prices rise.

3. As prices rise in the U. S., foreigners purchase fewer U. S. goods.

OPTIONS:

a. The Aggregate Demand Effect

b. The Wealth Effect

c. The Interest Rate Effect

d. The Export Effect

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