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gogolik [260]
3 years ago
14

What type of relationship exists between interest rates and aggregate spending?

Business
2 answers:
kakasveta [241]3 years ago
7 0

Answer:

Explanation:

Higher real interest rates reduces aggregate expenditure by increasing the cost of loans while increasing the earnings from savings. Both factors reduce expenditures by reducing consumption and investments, and therefore, aggregate expenditure.

monitta3 years ago
5 0

Answer:

mark brainlest

Explanation:

Higher real interest rates reduces aggregate expenditure by increasing the cost of loans while increasing the earnings from savings. Both factors reduce expenditures by reducing consumption and investments, and therefore, aggregate expenditure.

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