According to the wealth effect aggregate demand slopes downward (negatively) because ?

Question

Xaibi Aslam · Accepted Answer

lower prices increase the value of money holding and consumers spending increase

Xaibi Aslam · Answer

lower prices decrease the value of money holding and consumers spending decrease

Xaibi Aslam · Answer

lower prices reduce money holding increase lending, interest rates fall and investment spending increase

Xaibi Aslam · Answer

lower prices increase money holding decrease lending, interest rates rise and investment spending falls

Question #49300