Aggregate Demand Is Negatively Related to Interest Rates Because

question 33

Multiple Choice

Aggregate demand is negatively related to interest rates because

• A)higher interest rates encourage consumption
• B)higher interest rates encourage saving and deferring consumption
• C)new houses are usually financed by borrowing
• D)changes in interest rates affect exchange rates

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The feeling or state of being enticed or inclined to do something, often something unwise or wrong.

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