Asked by Jesse Francis on May 14, 2024
Verified
The interest rate effect states that ____________.
Interest Rate Effect
The impact that changes in interest rates have on consumer spending due to the cost of borrowing; generally, as interest rates rise, consumer spending decreases.
- Gain an understanding of the causes for the descending trajectory of the aggregate demand curve.
Verified Answer
PL
Pulane LeeuwMay 16, 2024
Final Answer :
higher prices push up interest rates,lowering the consumption of certain goods and services
Learning Objectives
- Gain an understanding of the causes for the descending trajectory of the aggregate demand curve.
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