Which of the factors below best explain the downward slope of aggregate demand curve?
The following list of factors, are related to the aggregate demand curve.
1. Real-balances effect
2. Household expectations
3. Interest-rate effect
4. Personal income tax rates
5. Profit expectations
6. National income abroad
7. Government spending
8. Foreign trade effect
9. Exchange rates
10. Degree of excess capacity
Multiple Choice
2, 4, and 6
7, 9, and 10
1, 3, and 8
4, 6, and 7