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.

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Definitions:

Axillary

Pertaining to the armpit area, often referenced in medical examinations or temperature measurements.

Oral

Relating to the mouth, or administered through the mouth.

Rectal

Pertaining to the rectum, which is the final section of the large intestine, terminating at the anus.

Axillary

Relating to the area under the arm.