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Which of the following describes why the substitution effect is not a good explanation of why aggregate demand slopes negatively?
It implies higher interest rates causing muddy waters when interpreting aggregate demand.
There is no overall substitution effect for domestically produced goods due to price level decreases.
Increased substitution results in more demand not less.
Substitution occurs only in the consumption component of the formula and does not explain investment changes that occur.
Substitution occurs only in the government component of aggregate demand and does not explain investment decisions.