The slope of aggregate demand becomes flatter?

CA Foundation · Business Economics · MTP · September 2025
The slope of aggregate demand becomes flatter?
(A) A. The more sensitive investment spending is to the rate of interest
(B) B. The more sensitive the demand for money is to the rate of interest
(C) C. The larger the nominal money supply
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. The more sensitive investment spending is to the rate of interest

Topics: Determination of National Income

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