Explore BrainMass

nominal value of money

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

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."

© BrainMass Inc. brainmass.com October 25, 2018, 1:13 am ad1c9bdddf

Solution Preview


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

The nominal ...

Solution Summary

The nominal value of money is demonstrated.

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.

View Full Posting Details