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The foreign purchases, interest rate, and real-balances effects explain why the select one:
a. aggregate demand curve is downward-sloping.
b. aggregate demand curve may shift to the left or right.
c. economy will adjust towards equilibrium.
d. aggregate expenditures schedule may shift up or down.

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gummy7
your answers are all Right but c d or a

The foreign purchases, interest rate, and real-balances effects explain why the A. Aggregate demand curve is downward-sloping.

It should be noted that the aggregate demand curve is downward-sloping due to the fact that a decrease in output will lead to an increase in price.

Also, a reduction or an increase in autonomous spending can shift the aggregate demand curve. When the foreign demand for domestic goods falls, then the foreign spending decreases.

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