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Category - Economics

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The slope of the aggregate demand (AD) curve is determined and influenced by all of the following EXCEPT:
  1. the interest rate effect
  2. the international effect
  3. the multiplier effect
  4. the local inflation effect
Explanation
Answer: D - The local inflation effect is not a determinant of the aggregate demand curve.

Key Takeaway: The aggregate demand curve slopes downward, influenced by a number of factors that include the interest rate effect and the international effect. Additionally, the multiplier effect (an amplification of initial changes in spending) causes a shift in the curve.
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