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09-05-2024
Business

Answered

One reason that the AD curve is downward sloping is because:

a. An increase in inflation causes the RBA to decrease real interest rates
b. An increase in inflation causes the RBA to increase real interest rates
c. Inflation reduces the value of peoples' wealth, lowering consumption.
d. Higher inflation reduces uncertainty and increases investment. e. Both b and c are correct.

Answer :

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