a. Which of the following explain why the
aggregate demand curve slopes downward?
The interest-rate effect, the real-balances effect, and the
foreign-trade effect
The investment effect, the real-balances effect, and the
international effect
The investment effect, the real-purchases effect, and the
foreign-purchases effect
The interest-rate effect, the real-purchases effect, and the
foreign-purchases effect
b. The real-balances effect says that as the price
level
rises, the real value of money will decrease, resulting in a
decrease in the quantity demanded of...