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nominal value of money

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True or false and explain. "The AD schedule slopes downward because real income rises as the price level declines and everybody buys more as their real income rises."

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True.

This is from the following web-page: http://wiki.answers.com/Q/Why_does_the_aggregate_demand_curve_slope_down

The nominal ...

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The nominal value of money is demonstrated.

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See Also This Related BrainMass Solution

Nominal money supply and changes in price levels affect the aggregate demand curve in different ways.

A change in the real money supply can result either from a change in the nominal money supply through Federal Reserve policy (holding the price level constant) or from a change in the price level (holding the nominal money supply constant). The change in the nominal money supply causes a shift in the aggregate demand curve, whereas a change in the price level causes a movement along the aggregate demand curve. Explain.

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