Decreases in Interest Rates Have Made It Less Costly to Finance

Multiple Choice

Decreases in interest rates have made it less costly to finance purchases of new houses. What impact will this have on U.S. aggregate demand?

A) None. A nation's aggregate demand is not affected by changes in interest rates.
B) U.S. aggregate demand will remain unchanged.
C) U.S. aggregate demand will decrease.
D) The U.S. aggregate demand curve will shift to the right.