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Vladimir [108]
4 years ago
9

A lower interest rate increases consumption, investment, and __________, which ___________ aggregate demand.

Business
1 answer:
alukav5142 [94]4 years ago
6 0
A lower interest rate increases consumption, investment, employment, which results in an increase in aggregate demand. 
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In the short run, Variable Inputs or costs are known as those which can be changed and their quantities can be varied. In this scenario, the employees that Cho's uses can be varied and so are the Variable Inputs.

Similarly, those costs that cann ot be changed or varied in the short run are rightly known as Fixed Inputs. Cho's Kitchen cannot take more than 3 ovens and also she has already signed a lease for them. These costs cannot be changed and so make the oven a Fixed Input.

It is worthy of note that in the long term, all Costs are considered Variable.

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