Which of the following explains why the AD curve is downward ...

[acc299]

Which of the following explains why the AD curve is downward sloping?
 
  a. a lower price level forces the government to reduce taxes, shifting the IS curve to the right and increasing income.
  b. A lower price level forces the central bank to increase the money supply, shifting the LM curve to the right and increasing income.
  c. A lower price level increases real money balances, shifting the LM curve to the right and increasing income.
  d. none of the above are correct.

Question 2

The Navigation Acts (1651 and later amendments) were intended to promote shipping and international commerce.
 
  Indicate whether the statement is true or false

[lkoler]

Answer to Question 1

C

Answer to Question 2

True

[acc299]

Thanks for the timely response, appreciate it

[deja]

Great answer, keep it coming