By looking at aggregate demand via its component parts, we can conclude that the aggregate demand curve is downward sloping because
A) a lower inflation rate causes the real interest rate to fall, and stimulates planned investment spending.
B) a lower inflation rate causes the real interest rate to rise, and stimulates planned investment spending.
C) a higher inflation rate causes the real interest rate to fall, and stimulates planned investment spending.
D) a higher inflation rate causes the real interest rate to rise, and stimulates planned investment spending.
A
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