An Increase in Interest Rates

question 148

Multiple Choice

An increase in interest rates:

• A) decreases aggregate demand, slowing economic activity.
• B) decreases aggregate demand, increasing economic activity.
• C) increases aggregate demand, slowing economic activity.
• D) increases aggregate demand, increasing economic activity.

---

Definitions:

Philosophy

The study of the fundamental nature of knowledge, reality, and existence, often considered an academic discipline.

Physiology

The branch of biology that deals with the normal functions of living organisms and their parts.

Science

The systematic study of the structure and behavior of the physical and natural world through observation and experiment.

Social Level

refers to the degree of societal organization and integration among individuals within a community or society, impacting cultural, economic, and social dynamics.