Interest Rates in the Economy Have Fallen

question 69

Multiple Choice

Interest rates in the economy have fallen.How will this affect aggregate demand and equilibrium in the short run?

• A)Aggregate demand will rise,the equilibrium price level will rise,and the equilibrium level of GDP will rise.
• B)Aggregate demand will rise,the equilibrium price level will fall,and the equilibrium level of GDP will rise.
• C)Aggregate demand will fall,the equilibrium price level will fall,and the equilibrium level of GDP will fall.
• D)Aggregate demand will fall,the equilibrium price level will rise,and the equilibrium level of GDP will fall.

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Definitions:

Grassroots Groups

Community-based organizations or movements that initiate action or change from the bottom up, often reflecting the needs, wants, or interests of local or common people.

Green Cup Competition

An event or initiative aimed at promoting environmental sustainability and awareness, often by challenging participants to reduce their carbon footprint or increase recycling efforts.

Environmental Improvements

Actions or initiatives taken to reduce pollution and restore natural ecosystems for the benefit of both the environment and human populations.

Special-Interest Group

An organization of people with shared ideas or goals who try to influence public policy and decisions.