The Interest Rate Effect on Aggregate Demand Indicates That A(n)

question 51

Multiple Choice

The interest rate effect on aggregate demand indicates that a(n) :

• A) Decrease in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending
• B) Decrease in the price level will decrease the demand for money, decrease interest rates, and increase consumption and investment spending
• C) Increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending
• D) Increase in the supply of money will increase interest rates and decrease interest-sensitive consumption and investment spending

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Definitions:

Per Capita Incomes

The average income earned per person in a given area or country.

Birth Rates

A rephrased: The frequency of live births in a given population, measured as the number of births per 1000 individuals per year.

IACs

An abbreviation that could stand for Internet Access Controllers, though without specific context, its precise meaning can vary.