An Increase in Interest Rates Will Cause the Aggregate Demand

question 69

True/False

An increase in interest rates will cause the aggregate demand curve to shift to the left.

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Definitions:

Operating Activities

Day-to-day business functions and transactions that affect a company's net income, primarily revenue and expense activities.

Net Income

The amount of money that remains after subtracting all expenses, taxes, and costs from total revenue.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed.

Bonds Payable

Long-term liabilities representing money a company must pay back to bondholders by a specified maturity date.