Interest Rates in the Economy Have Risen

question 48

Multiple Choice

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

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

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