Question

There are three reasons for the downward slope of the demand curve:

the wealth effect, the interest rate effect, and the international trade effect. Match each effect with the component of aggregate demand it most closely impacts.
1) net exports
2) consumption
3) investment

Answer 1

Step-by-step explanation:

From the above question, three reasons for the downward slope of the demand curve and the effect with the component of aggregate demand are:

1. Net Exports : the international trade effect

2. consumption : the wealth effect

3. investment : the interest rate effect