The slope of the aggregate demand (AD) curve is determined and influenced by all of the following except:
A)The interest rate effect
B)The international effect
C)The multiplier effect
D)The local inflation effect

Question

Quizplus · Accepted Answer

The local inflation effect is not a determinant of the aggregate demand curve.
Key Takeaway: The aggregate demand curve slopes downward, influenced by a number of factors that include the interest rate effect and the international effect. Additionally, the multiplier effect (an amplification of initial changes in spending) causes a shift in the curve.

The Slope of the Aggregate Demand (AD) Curve Is Determined