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  3. Study Set
    Business Economics
  4. Exam
    Exam 5: Understanding Inflation, Business Cycles, and Monetary Policy
  5. Question
    An Increase in the Interest Rate1
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An Increase in the Interest Rate1

Question 1

Question 1

Multiple Choice

An increase in the interest rate1


A) shifts the aggregate demand curve to the left
B) shifts the aggregate demand curve to the right
C) has no effect
D) moves the economy along the aggregate demand curve

Correct Answer:

verifed

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