The intertemporal substitution effect of the price level on aggregate demand
A. is the same as the real wealth effect.
B. is one reason that the aggregate demand curve has a negative slope.
C. explains why aggregate demand increases when the amount of money increases.
D. is one reason that the aggregate demand curve has a positive slope.
Answer:B
The intertemporal substitution effect of the price level on aggregate demand
A. is the same as the real wealth effect. B. is one reason that the aggregate demand curve has a negative slope. C. explains why aggregate demand increases when the amount of money increases. D. is one reason that the aggregate demand curve has a positive slope.