Decreasing interest rates tend toGroup of answer choicesIncrease aggregate demandAll options are correctLower inflationCause unemployment
Question
Decreasing interest rates tend toGroup of answer choicesIncrease aggregate demandAll options are correctLower inflationCause unemployment
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Solution 1
The correct answer is: Increase aggregate demand.
Here's why:
- Interest rates are a key tool used by central banks to influence economic activity. When interest rates are decreased, borrowing costs become cheaper. This encourages businesses to invest and consumers to spend, both of which can sti Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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