Decreased interest rates will shift the aggregate demand curve to the _____ and _____ output demanded.
A) left; decrease
B) left; increase
C) right; increase
D) right; decrease

Question

Quizplus · Accepted Answer

Decreasing interest rates will encourage borrowing and investment, leading to an increase in consumer and business spending. This will shift the aggregate demand curve to the right, increasing output demanded.

Decreased Interest Rates Will Shift the Aggregate Demand Curve to the _____