Figure 15-1 -Refer to Figure 15-1.Ceteris paribus,an increase in interest rates would be represented by a movement from A)AD₁ to AD₂. B)AD₂ to AD₁. C)point A to point B. D)point B to point A.

Question

Quizplus · Accepted Answer

An increase in interest rates would lead to a decrease in investment and consumption and an increase in savings, thus causing a shift from AD₂ to AD₁.

Figure 15-1 -Refer to Figure 15-1.Ceteris Paribus,an Increase in Interest Rates Would