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3 years ago

Which of the following is a correct explanation for why the aggregate demand curve slopes downward?

Business

1 answer:

mario62 [17]3 years ago

3 0

Answer:

The correct answer is option D.

Explanation:

As the price level decreases, the purchasing power of money increases. Or in other words, the real value of cash balances will increase.

This implies that consumers will need lesser money to purchase more goods and services. As a result, the total expenditure will increase.

An increase in the price level, on the other hand, will cause the purchasing power and real value of money balances to decrease. As a result, the total expenditure will decrease.

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Alex73 [517]

Answer:

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3 years ago

Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox was using a(n) _____ strategy to help reco

34kurt

Answer:

c. skimming pricing

Explanation:

Based on the information provided within the question it can be said that in this scenario Xerox was using a skimming pricing strategy to help recover the cost of its research and development. This is a pricing strategy in which the company places a really high initial price for it's new product, but then goes lowering the price as time passes. This also makes individuals believe that they are getting a bargain when prices begin to drop and decide to buy more.

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3 years ago

Carol Byrd gets a student rate of $30.00 a month for health insurance. There is a $250 deductible. She recently received treatme

e-lub [12.9K]

The company's payment = $1640,

Carol's total cost = $410.

<u>Given:</u>

Bill amount = $2300

Amount of deductible = $250

Remaining amount is given by:

=$2300-$250

=$2050

Since Carol's insurance company provided paid 80% of the bill less the deductible.

So, the Company's Payment is given by:

Company Pays 80% which translates to 0.8

Company Payment = 0.8*2050

Company Payment = $1640

Carol's total cost after the payment of company is given by

Carol pays = $2050 - $1640

Carol pays = $410

Hence, the company's payment was $1640, Carol's total cost was $410.

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2 years ago

One example of a primary market transaction would be the: sale of 100 shares of stock by maria to her best friend. purchase by t

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3 years ago

Juan recently completed 20 years of service in the army. during this time, he managed to save a little money and is entitled to

malfutka [58]

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3 years ago

Which of the following is a correct explanation for why the aggregate demand curve slopes​ downward?

Which of the following is a correct explanation for why the aggregate demand curve slopes downward?