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Social Studies, 10.03.2020 17:30 bobby237065

Match the cause for the negatively sloped aggregate demand curve on the left with the correct term from the right.

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 Expport Effect

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