Economics (AS & A Level) · Oct / Nov 2023 · Paper 13 · Question 20
9708Aggregate Demand and Aggregate Supply analysis
An aggregate demand curve slopes downwards from left to right. One reason for this is that a reduction in the average price level will lead to
- Aa decline in the country's international competitiveness.
- Ban increase in interest rates.
- Can increase in the real value of money balances.
- Dthe expectation of further price falls.
As printed in the paper
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Correct answer: C. an increase in the real value of money balances.
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