Question

SOMEONE PLEASE HELP ME ASAP PLEASE!!!!!

Interest rates have a negative correlation with Aggregate Demand. As interest rates decrease, what will happen to the Aggregate Demand ?

A. Aggregate Demand will shift to the left
B. Aggregate Demand will stay the same
C. Aggregate Demand will shift to the right ​

Answer 1

A

Step-by-step explanation

as interest rates decreases, people have less disposable income to spend therefore they will demand less and aggregate demand will shift to the left.