The rightward shift of the RS curve will lead to a ________ in the real interest rate, ________ in investment, and ________ in aggregate demand.
A) rise; an increase; an increase
B) rise; an increase; a decrease
C) rise; a decrease; a decrease
D) fall; an increase; an increase
E) fall; an increase; a decrease

Question

Quizplus · Accepted Answer

A rightward shift of the RS (Real Supply) curve typically indicates an increase in supply, leading to a fall in the real interest rate, which encourages more investment and increases aggregate demand.

The Rightward Shift of the RS Curve Will Lead to a ________