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An increase in the interest rate __________________.a.Shifts the aggregate demand curve to the leftb.Shifts the aggregate demand curve to the rightc.Has no effectd.Moves the economy along the aggregate demand curveClear my choice

Question

An increase in the interest rate __________________.a.Shifts the aggregate demand curve to the leftb.Shifts the aggregate demand curve to the rightc.Has no effectd.Moves the economy along the aggregate demand curveClear my choice

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Solution

An increase in the interest rate has the following effect:

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