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.

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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.

The interest rate effect states that ____________.

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Learning Objectives

Learning Objectives

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