Asked by
ritisha pabbarajuu
on Nov 16, 2024
Verified
Changes in the interest rate
A) shift aggregate demand whether they are caused by changes in the price level or by changes in fiscal or monetary policy.
B) shift aggregate demand if they are caused by changes in the price level, but not if they are caused by changes in fiscal or monetary policy.
C) shift aggregate demand if they are caused by fiscal or monetary policy, but not if they are caused by changes in the price level.
D) do not shift aggregate demand.
Aggregate Demand
The all-encompassing demand for goods and services within an economic sphere, calculated at a specific price level during a certain period.
Interest Rate
The cost of borrowing money, typically expressed as a percentage of the amount borrowed.
- Grasp the way alterations in aggregate demand affect economic conditions.
Verified Answer
TP
Learning Objectives
- Grasp the way alterations in aggregate demand affect economic conditions.