Decreases in Interest Rates Have Made It Less Costly to Finance

question 219

Multiple Choice

Decreases in interest rates have made it less costly to finance purchases of new houses. What impact will this have on U.S. aggregate demand?

• A) None. A nation's aggregate demand is not affected by changes in interest rates.
• B) U.S. aggregate demand will remain unchanged.
• C) U.S. aggregate demand will decrease.
• D) The U.S. aggregate demand curve will shift to the right.

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Definitions:

Military Ranks

A system of hierarchical relationships in armed forces, police, intelligence agencies, or other institutions organized along military lines.

Personal Freedom

The right of individuals to make choices about their own lives without undue interference from external forces such as the government or society.

Hierarchically Structured

Organized in a way where individuals or groups are ranked one above the other according to status or authority.

Division Of Labor

The allocation of distinct tasks to different people or groups in a social or economic context to increase productivity.