1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MrRa [10]
3 years ago
8

An increase in interest rates affects aggregate demand by

Business
1 answer:
skad [1K]3 years ago
5 0

Answer:

Option (B) is correct.

Explanation:

When there is an increase in the interest rate then as a result this will shift the aggregate demand curve leftwards. This is because of the fall in one of the component of aggregate demand curve that is investment.

Increased interest rate will reduce the investment demand and hence shifts the aggregate demand curve rightwards. This increase in the interest rate will also increase the reserves of the banks.

When there is a leftward shift in the AD curve then as a result there is a fall in both real GDP and Price level in an economy.

You might be interested in
At the broadest level, the financial system moves the economy’s scarce resources from
Igoryamba

Answer: A - the rich to the poor

Explanation: At the broadest level, the financial system moves the scarce resources from the rich to the poor.

This means that at this level, the rich save more of the resources because they have more than enough while the poor borrows more cause they do not have enough to spend now and would prefer to borrow to meet their needs.

4 0
3 years ago
What is authenticity in the often-used framework of quality criteria?
Sergio [31]
<span>What is authenticity in the often-used framework of quality criteria? This framework is made up of credibility, dependability, confirmability, transferability and authenticity. Authenticity shows how researchers family and faithfully show different reality possibilities. Authenticity will show in how participants act, feel and speak and what is depicted of them. </span>
4 0
3 years ago
Giving consumers larger quantities at a low price would help taco bell regain _____.
lisov135 [29]
The answer that best fits the blank provided above is this: A COMPETITIVE ADVANTAGE. When we say competitive advantage, this is when this fast food restaurant gains that position that is ahead of the rest. This is because of their low prices for larger quantities. Hope this helps.
4 0
3 years ago
When a commercial item is procured by the government, what will the contractor provide to the government that documents the func
Kitty [74]
<span>When a commercial item is procured by the government, the contractor will provide a </span>TDP or Technical Data Package<span> to the government</span> that documents the functional, performance, and physical characteristics of their product and will assist in the development of configuration management efforts.
4 0
3 years ago
When the price level decreases: Group of answer choices The demand for money falls and the interest rate falls Holders of financ
rodikova [14]

Answer:

The answer is A. demand for money falls and the interest rate falls

Explanation:

The demand for money is the amount of money or amount of wealth households or businesses choose to hold in the form of money(cash or cash-equivalent).

When the price level decreases, the purchasing power of consumers increases, so consumers' demand for money will be reduced or lower. The transactional demand for money will be reduced.

Also when price level decreases, interest rate falls. Because the purchasing power of consumers has been increased, the excess money will be kept in banks and the increases the money supply. So with an increase in money supply, interest rate will be reduced to encourage borrowing.

3 0
3 years ago
Read 2 more answers
Other questions:
  • Suppose that Bobo purchases 1 pizza per month when the price is $19 and 3 pizzas per month when the price is $15. What is the pr
    9·1 answer
  • Geraths Windows manufactures and sells custom storm windows for three season porches and also provides installation service for
    14·1 answer
  • Jimmi wants a new cellular phone that many other people also want to buy. There are not enough phones produced to fill the deman
    8·1 answer
  • If real GDP per capita in the United States is currently $50,000 and grows at 2.5% per year, it will take approximately how many
    12·1 answer
  • Pauli's Pizza offers one slice for $2, two slices for $3.50, three slices for $4.50, and four slices for $5.00. Sal orders two s
    10·1 answer
  • Which of the following is true of packaging and labeling?a) An advantage of packaging is the low cost required for the process.b
    10·1 answer
  • How do property right benefit entrepeneurs?
    14·1 answer
  • A monopolist can sell 15 toys per day for $12.50 each. To sell 16 toys per day, the price must be cut to $12.20. The marginal re
    15·1 answer
  • The total factory overhead for Bardot Marine Company is budgeted for the year at $820,850, divided into four activities: fabrica
    9·1 answer
  • Garrett sold his primary residence for $595,000, which was a capital gain of $315,000. how much may garrett exclude on his incom
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!