Decreasing interest rates tend toGroup of answer choicesIncrease aggregate demandAll options are correctLower inflationCause unemployment

The correct answer is: Increase aggregate demand.

Here's why:

1. 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 stimulate economic activity.

2. Aggregate demand, which is the total demand for goods and services within an economy, is likely to increase as a result. This is because businesses may increase their demand for capital goods and consumers may increase their demand for consumer goods.

3. While lower interest rates can potentially lead to higher inflation in the long run (due to increased demand potentially outstripping supply), they do not directly lower inflation.

4. Similarly, while lower interest rates can potentially reduce unemployment by stimulating economic activity, they do not directly cause unemployment. Therefore, the statement "All options are correct" is not accurate in this context.