A Decrease in Interest Rates Caused by a Change in the Price

question 319

Multiple Choice

A decrease in interest rates caused by a change in the price level would cause a(n)

• A) decrease (or shift left) in aggregate demand.
• B) increase (or shift right) in aggregate demand.
• C) decrease in the quantity of real output demanded (or movement up along AD).
• D) increase in the quantity of real output demanded (or movement down along AD).

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