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(h) (2 points} Which of the following best describes why the aggregate demand curve slopes downward ? Q If the central bank observes a low

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(h) (2 points} Which of the following best describes why the aggregate demand curve slopes downward ? Q If the central bank observes a low rate of ination, the monetary policy rule dictates an increase in the real interest rate. The high interest rate reduces output by reducing investment demand in the economy. 0 If the central bank observes a high rate of ination, the monetary policy rule dictates a decrease in the real interest rate. The low interest rate increases output by reducing investment demand in the economy. 0 If the central bank observes a high rate of ination, the monetary policy rule dictates an increase in the real interest rate. The high interest rate reduced output by reducing investment demand in the economy. 0 If the central bank observes a low rate of ination, the monetary policy rule dictates a decrease in the real interest rate. The low interest rate reduces output by reducing investment demand in the economy. O None of these answers is correct

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