# According to the interest rate effect aggregate demand slopes downward (negatively) because ? with Answer - Economics Mcqs | ExamZone

> Solved MCQ: According to the interest rate effect aggregate demand slopes downward (negatively) because ? Correct Answer: D. lower prices reduce money holdings increase lending interest rates fall, and investment spending increase. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# According to the interest rate effect aggregate demand slopes downward (negatively) because ?

Direct Answer & Quick Reference

The correct option is **D. lower prices reduce money holdings increase lending interest rates fall, and investment spending increase**.

A. lower prices increase money holdings decrease lending interest rates rise, and investment spending falls

B. lower prices increase the value of money holding and consumer spending increases

C. lower prices decrease the value of money holdings and consumers spending decreases

D. lower prices reduce money holdings increase lending interest rates fall, and investment spending increase **(Correct Answer)**

Verified Key: D. lower prices reduce money holdings increase lending interest rates fall, and investment spending increase
Solved by 5,201+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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