If, for any given rate of inflation, the real rate of interest declines, the AD curve will shift to the left.

Name: If, for any given rate of inflation, the real rate of interest declines, the AD curve will shift to the left.
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If the real rate of interest declines, it would encourage borrowing and increase spending, leading to an increase in aggregate demand (AD). Therefore, the AD curve would shift to the right.

If, for Any Given Rate of Inflation, the Real Rate