The AD curve slopes
A. downward due to the wealth and price effects.
B. downward due to the wealth and substitution effects.
C. upward due to the price and substitution effects.
D. upward due to the wealth and substitution effects.
Answer:B
The AD curve slopes
A. downward due to the wealth and price effects. B. downward due to the wealth and substitution effects. C. upward due to the price and substitution effects. D. upward due to the wealth and substitution effects.