An Increase in Interest Rates Due to a Decrease in the Money

question 64

Multiple Choice

An increase in interest rates due to a decrease in the money supply will

• A) reduce aggregate demand.
• B) not change aggregate demand.
• C) increase aggregate demand.
• D) decrease aggregate supply in the short run and in the long run.

---

Definitions:

Arbitration

A form of dispute resolution where a neutral third party makes a binding decision to resolve a conflict between parties.

Facilitation

The process of making something easier or less difficult to do or achieve.

Mediation

Mediation is a process where a neutral third party assists disputing parties in reaching a mutually acceptable agreement or resolution.

Taking A Side

The act of supporting one party or viewpoint over another in a dispute or conflict.