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:

Persuade

To persuade an individual to adopt a certain belief or take a specific action by using logic or discussion.

Analyze

Examine in detail for the purpose of explanation and interpretation.

Collaboratively

In a way that involves two or more people or entities working together towards a common goal or project with shared efforts.

Open And Direct Approaches

Communications or methods that are straightforward and unambiguous, aiming for clarity and honesty.