Interest Rates in the Economy Have Risen

question 97

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.

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Definitions:

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The condition of having enough financial resources to support oneself without relying on external aid or support.

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An individual or advocate involved in a movement aiming to address and reform issues of social injustice, corruption, and inefficiency in society.