One reason for the downward slope of the aggregate-demand curve is the interest- rate effect: when prices fall, interest
Posted: Mon May 02, 2022 8:08 am
One reason for the downward slope of the aggregate-demand curve
is the interest- rate effect: when prices fall, interest rate
falls. This increases investment and demand. Why does interest rate
fall when prices fall?
a) when prices fall, money supply decreases
b) when prices fall, money supply increases
c) when prices fall, money demand decreases
d) when prices fall, money demand increases
is the interest- rate effect: when prices fall, interest rate
falls. This increases investment and demand. Why does interest rate
fall when prices fall?
a) when prices fall, money supply decreases
b) when prices fall, money supply increases
c) when prices fall, money demand decreases
d) when prices fall, money demand increases