A-LevelEconomicsThe macroeconomy9708/12 · Feb/Mar 2018 · Q191 Mark
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
Adecline 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.
✓ Correct answer
C: an increase in the real value of money balances.
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